Amway to Close Lakeview, MI, Nutrilite Facility

by louabbott on May 22, 2010

Amway to close its Nutrilite facility by 2013

This is not news that will particularly affect Amway/Quixtar IBOs much.  But the article does point to huge, important, and long-term trends that are affecting all network marketers:

Amway Corp. will close its facility in Lakeview that has grown and processed the Nutrilite line of dietary supplements for more than a half century, the company said in a recent statement.

The shutdown will eventually affect 150 employees and be phased in over three years, the Michigan-based company said. Amway said it is closing the factory and downsizing several others because much of its customer base is now international.

Some of the Lakeview work will be shifted to a processing facility in Buena Park, which is expanding its capacity, and some to a plant near Amway’s Ada, Mich., headquarters. Other jobs will go to Washington state, Mexico and Brazil.

“More than 80 percent of our customers buy our products outside the United States and Amway needs to update its supply chain to reflect that,” Steve Van Andel, Amway’s chairman, said in the statement.

Rob Zieger, Amway’s director of corporate communications, said that moving Nutrilite’s agricultural production to another state and two Latin American countries will give the company more acreage and allow it to produce more.

“A cutback in capacity is not what we’re doing,” Zieger said in a telephone interview.

Privately held Alticor Inc., Amway’s parent company, announced in March it had sales of $8.4 billion in 2009. Amway does not release breakdowns of individual brand’s performances.

…”It was a very tough call but in the end we had to make some decisions about how we can be more efficient,” Zieger said.

See my comments in the video toward the upper right of this page.

Full article can be found here.

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{ 5 comments… read them below or add one }

Michael Eisbrener May 24, 2010 at 10:22 am Thumb up 4 Thumb down 2

The major consideration is no longer labor costs. If 80% of your customers are half a world away, shipping costs and the associated ‘impact’ on the environment and how government is going to make you pay for that is a serious consideration. Citizens of the USA are by and large the most clueless lot left on the planet. The cost of operating against all the wishes of all the layers of government make any amount of graft and extortion you might find elsewhere in the world become more reasonable. There are more Chinese with over $18,000 in discretionary income than there are people living in North America. IF your business is locked into the regulatory swamp called the USA/Canada you may want to raise your sights an ocean or two. Living outside of North America long enough, a week is sufficient, you will discover the myth of North American superiority disappeared in reality long ago and the current conundrum is just making it more obvious to anyone who cares to see.

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John Ashton May 24, 2010 at 2:04 am Thumb up 4 Thumb down 6

Amway is just another “sell out” company that lays off American workers and manufactures product overseas. I don’t respect them for that and I refuse to buy Amway products.

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Kevin O'Leary May 23, 2010 at 5:27 pm Thumb up 2 Thumb down 1

It may be worth looking closely into the the exchange value of the US dollar before embarking on any foreign conquests.

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Jan Robberts May 23, 2010 at 4:24 pm Thumb up 0 Thumb down 2

No doubt,others will follow Amway’s example.
As many times before,Amway,as a global leader has taken the international bull by the horns and will engage it’s worldwide awareness and vision to spread it’s manufacturing as well as financial benefits into an ever expanding
and demanding market.

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Kendall Peterson May 23, 2010 at 4:01 pm Thumb up 3 Thumb down 2

Lou, I agree … I think this illustrates the whole concept of building locally while thinking globally. You don’t have to travel to other countries to have a thriving business in them. Find someone locally who has the contacts in other nations.

One of the beauties of this industry allows one to build businesses world wide and to be nimble enough to respond to changing conditions. Very few other industries have those advantages.

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