The pressure on manufacturers to provide consumer goods at the lowest possible prices is not going to change just to bring jobs and manufacturing back to America. The reason is simple: Consumers are unwilling to pay significantly more for what they buy now.

Not every product can be produced without a significant portion of the cost represented by labor. Technology and automation are frequently advertised as solutions. In many cases, the cost of automation to reduce labor and increase productivity cannot be justified. This is especially true on products with low retail prices. There is just no room to invest in high-dollar technology to lower labor costs. In addition, technology and automation can just be moved offshore.

Here is my personal example. My company was producing products that retailed for approximately $5. We were using state-of-the-art high-tech equipment. We hit a wall with wholesale buyers to the point where we could not compete with companies making similar products using offshore labor. By moving my equipment offshore and reducing our labor rate by 50 percent or more, we became competitive. This allowed the company to reduce costs and increase sales. Without taking this step, we never would have been able to survive, and the company eventually would have failed. Instead we thrived and continued to grow.

Consider consumer electronics. Televisions, cell phones, computers, appliances, and more all would cost approximately 50 percent more if manufactured in the U.S. using American workers. The technology that produces these products is in offshore factories, so there is no way the technology can come back to America and produce products with competitive prices - not with American wages.

The keys to providing more jobs are new products and innovation. The hard work of new-product development and determining potential markets can be accomplished with American workers. It is all about volume. When the volume reaches a certain point, moving manufacturing offshore to reduce costs is justified. There are exceptions - however, not very many.

Think about this sales call on a buyer for Wal-Mart. You have a great product. You have tested the market. And consumers want to buy it. The buyer loves what you have and wants to place it in 3,000 stores. It has the potential to be a million-dollar deal. Similar products are already in the stores, but yours is better. It is more durable, it has more features, and it has better cosmetics. The buyer concedes that your product is capable of a slightly higher retail price than the similar products. He is realizing a great margin on the current product because it is produced offshore. When he inquires as to where your product is made and what it will cost, you are at the moment of truth. He knows that whatever price you need for your better product would be lower if the product was produced offshore, and his profitability would be higher if that was the case.

This scenario is the reality of how it really works. You cannot compete with a manufacturer making products at offshore labor rates.

The pressure from buyers forcing manufacturers to lower prices is intense. To succeed as a business, you must be competitive. How do you compete with the low-cost provider? A competitive price, great quality, and prompt reliable delivery usually will do the trick. Note that the most important factor is a competitive price.

Ron Riegger of Moose Lake is a military officer, retiring in 1984 after 23 years of service, and a business operator, specializing in the manufacturing of fishing tackle.