However, the Hong Kong facility offers higher skilled employees, and thus has a greater ability to adhere to restrictions and regulations, such as those imposed by the U.S. The facility in Hong Kong is more costly in terms of labor at $3.85 per hour for each employee. Currently, they are manufacturing about one third of their items out of the Chinese facility due to low labor costs of $0.16 per hour for each employee. Sport Obermeyer has major production capabilities in Hong Kong and China. This trade show helps in setting market trends and gives retailers the opportunity to begin placing orders for items that are already in full scale production. Full scale production begins about six months later, and after about a year from initial conception design feedback is finally received from retailers at an important trade show in Las Vegas.
The cycle begins with a lengthy design and prototype production process. Preparation for each season’s clothing line is a two year process.
The challenges are in the areas of forecast accuracy, order turnaround time, and the expense of overseas production facilities. In recent years, the founder’s son has taken over major management responsibilities as the company’s Vice President, and he is hoping to address some challenges faced by the company.
