*** No outsourcing at Lynnwood firm ***

Lynnwood, Washington -- 11/02/2004
At a time when many U.S. manufacturers have moved factories
overseas or contracted with foreign companies to save money,
Marv Behar is somewhat of an iconoclast.

His company, My Bag, which assembles a variety of bags and prints
corporate and promotional logos on them, is a local standout in the
ongoing debate about outsourcing jobs because the factory still
operates on U.S. soil.

Behar, a businessman for 30 years, likes his company in the
United States, especially because he can hire people from the
Puget Sound area. "That's why I'm here. We keep it local," he said.

These days, it can be difficult, especially when overseas competitors,
such as those in Vietnam and China, have lower labor and capital
costs, the 69-year-old said.

But he thinks his business model -- one in which he offers custom
designs, introduces new bag ideas, accepts small orders and meets
tight deadlines -- will keep his business afloat.

Nationally, My Bag is in the minority of manufacturers that
produce promotional goods, according to the Pennsylvania
-based Advertising Specialty Institute, which follows the industry.

Two decades ago, said ASI President Timothy Andrews, about
80 percent of promotional items, such as those made by Behar,
would have been manufactured in the United States.

But with the rise of competitors overseas, especially
in the 1990s, that number has dropped to 40 percent.

The split between U.S. and international production also is
complex because some manufacturers have stateside offices
but work with overseas contractors.

In Washington state, there are at least 52 manufacturers
similar to My Bag, according to the institute.

Behar started noticing international competition in the 1980s,
around the same time he was making bicycle bags and running
shorts.

During that decade, he said, international competition
caused him to lose contracts with some national retailers.

It wasn't until the 1990s when the pinch became more apparent.

While overseas factories capitalize on lower costs, Behar said,
My Bag focuses on being agile and taking smaller orders to stay
competitive, something he couldn't do if his factory were overseas.

In some cases, he will agree to make just one item, like a tablecloth
with a promotional, academic or corporate logo. Or he will fill an
order in just five days, if a client is on a tight deadline.

He also is able to quickly introduce new products, such as a bag
to keep lettuce crisp or a picnic basket that can unfold and sit flat
on a table or the ground.

The Edmonds resident takes issue with economists who believe
that the trend of American companies opening factories abroad
is good for the U.S. economy.

"If you don't manufacture products, you'll have nothing to trade,"
he said, referring to why he thinks manufacturing is important to
the Seattle area. "Everybody in this country can't be a computer
operator."

Geneb...Wenatchee,Washington-USA
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