MADE IN AMERICA, SOLD IN AMERICAS
Relocating manufacturing facilities helps TOTO maintain quality and lower costs
Controlling costs and driving sales growth through regional manufacturing.
TOTO’s commitment to sustainability extends far beyond product performance. The economic and environmental impacts of chasing cheap labor to Asia, then shipping finished products back around the world for distribution and sale are too great to ignore. In response, TOTO has begun to explore manufacturing opportunities in the Americas—a phenomenon known as “re-shoring” or “near shoring.”
There are several factors driving the re-shoring movement. These issues are referred to as “Asian Headwinds.” Among them:
- Rising labor costs (in some cases as much as 20% in a single year)
- Reductions in value-added tax (VAT) rebates
- Currency fluctuations
- Higher energy and fuel costs and
- Changes in import/export duties
- Long lead times (and difficulty resolving quality issues)
- Increased transportation costs
- Political instability
Furthermore, Asian countries are increasingly enacting environmental controls of their own, which can further raise manufacturing costs. Currently, the U.S. and Latin America can offer lower prices thanks to:
- Lower rates of inflation
- Longstanding environmental policies
- Stable or reduced energy costs
- Increased productivity
- Political stability
This is a significant paradigm shift, prompting TOTO to reexamine our strategies for production, procurement, and global distribution of our products. In fact, our Morrow, Ga. factory currently produces one-piece porcelain toilets at a lower cost than our best factory in China. As a result, we’ve shifted our entire manufacturing strategy toward building factories closer to the regions where their products are sold.
By exploring domestic manufacturing opportunities, TOTO will not only support each region’s growth, but also the growth of TOTO’s market share within it.
Benefits for PeoplePlanetWater
By bringing manufacturing closer to the point of sale, TOTO has had significant impacts on people, the planet, and water. Here’s how:
Creating jobs, reducing costs. Relocating manufacturing facilities to the Americas has not only created jobs, it's helped TOTO to reduce shipping costs and streamline quality control. We pass those savings on to our customers.
Think globally, shop locally. Instead of shipping our products around the world for distribution and sale, TOTO manufactures in the Americas—reducing our overall carbon footprint.
By land, not by sea. TOTO doesn't just believe in conserving fresh water—we’re serious about saving the oceans, too. Fewer container ships mean less pollution and cleaner beaches.
Since 2010, America has added roughly 500,000 manufacturing jobs, which is an increase of 4.3%.