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Thread: How important is the optical Lab industry ?...................................

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    Redhot Jumper Will optical labs be coming back to this Continent ?

    How important is the optical Lab industry ?

    For years optical laboratories have been bought up by some of the corporations as it used to be in the old days of the 1950s and on, when AOCO and B&L dominated the laboratory market in the USA and Canada.

    They even managed to block newcomers from purchasing machinery and start new competitive labs, until Coburn as a young revolutionary company in optical machinery, broke this tight ring.

    In the newest practice it seems that many, or maybe most of these labs have been moved to far eastern Countries. as well as Mexico where they continue to feed the North American optical retail market, the same as if they were still in the same neighbourhood
    .

    Hearing all the news how the new Washington Government wants to bring back the expatriated businesses and jobs to this Continent by taxing their imports, I am wondering how this would or will affect the optical retail business.

    I do not want to start any political discussion because I believe this is more a survival issue in the first place.








    Last edited by Chris Ryser; 02-22-2017 at 01:43 AM.

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    Quote Originally Posted by Chris Ryser View Post
    How important is the optical Lab industry ?

    For years optical laboratories have been bought up by some of the corporations as it used to be in the old days of the 1950s and on, when AOCO and B&L dominated the laboratory market in the USA and Canada.

    They even managed to block newcomers from purchasing machinery and start new competitive labs, until Coburn as a young revolutionary company in optical machinery, broke this tight ring.

    In the newest practice it seems that many, or maybe most of these labs have been moved to far eastern Countries. as well as Mexico where they continue to feed the North American optical retail market, the same as if they were still in the same neighbourhood
    .

    Hearing all the news how the new Washington Government wants to bring back the expatriated businesses and jobs to this Continent by taxing their imports, I am wondering how this would or will affect the optical retail business.

    I do not want to start any political discussion because I believe this is more a survival issue in the first place.








    Taxing imported goods to bring back businesses and jobs will have the exact opposite effect. It will only raise the COGS for retailers and ECP's and result in layoffs as people are the quickest and easiest way to provide an immediate counter balance to the increase.

    Companies operating overseas will stay exactly where they are. The tax incentives and low skilled labor costs across the pond are far too enticing to fold up their tent and relocate. And I can't believe for a second that there would be a new crop of venture capitalists willing to ante up millions of dollars to open a few labs on U.S. soil to produce the same products at a much higher cost.

    Mathematically and politically it doesn't make sense whatsoever.

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    Quote Originally Posted by Lab Insight View Post
    Taxing imported goods to bring back businesses and jobs will have the exact opposite effect. It will only raise the COGS for retailers and ECP's and result in layoffs as people are the quickest and easiest way to provide an immediate counter balance to the increase.

    Companies operating overseas will stay exactly where they are. The tax incentives and low skilled labor costs across the pond are far too enticing to fold up their tent and relocate. And I can't believe for a second that there would be a new crop of venture capitalists willing to ante up millions of dollars to open a few labs on U.S. soil to produce the same products at a much higher cost.

    Mathematically and politically it doesn't make sense whatsoever.

    Disagree, no way it would have the opposite effect. While it certainly will raise the cost of goods for retailers buying from oversea's it will help level the playing field for the Optical Lab's here in the US. A statement of layoffs for an immediate counter balance is ridiculous. Companies over sea's will stay exactly where they are yes, and companies here in the US will as well, but companies here in the US will absolutely get an up tick in volume due to the cost savings of buying in the US. Mathematically and Politically (with President Trump) it makes all of the sense in the world.

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    Blue Jumper I can't believe for a second that there would be a new crop of venture capitalists

    Quote Originally Posted by Lab Insight View Post

    And I can't believe for a second that there would be a new crop of venture capitalists willing to ante up millions of dollars to open a few labs on U.S. soil to produce the same products at a much higher cost.

    Mathematically and politically it doesn't make sense whatsoever.


    I dont think that the idea is to open labs with a new crop of venture capitalists .

    As far as I understand is that the US government wants the corporations that moved away, including their manufacturing facilities, to come back including those manufacturing facilities and give the lost jobs back to the people that lost them.

    That is why they want to tack special duties on lab jobs done overseas and Mexico, at the point of import. This will affect every field of the commercial market.

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    Quote Originally Posted by Chris Ryser View Post
    I dont think that the idea is to open labs with a new crop of venture capitalists .

    As far as I understand is that the US government wants the corporations that moved away, including their manufacturing facilities, to come back including those manufacturing facilities and give the lost jobs back to the people that lost them.

    That is why they want to tack special duties on lab jobs done overseas and Mexico, at the point of import. This will affect every field of the commercial market.
    That was exactly my point Chris. They aren't coming back nor is there a new crop waiting to put the shovel in the ground in North America.

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    Quote Originally Posted by Plausible View Post
    Disagree, no way it would have the opposite effect. While it certainly will raise the cost of goods for retailers buying from oversea's it will help level the playing field for the Optical Lab's here in the US. A statement of layoffs for an immediate counter balance is ridiculous. Companies over sea's will stay exactly where they are yes, and companies here in the US will as well, but companies here in the US will absolutely get an up tick in volume due to the cost savings of buying in the US. Mathematically and Politically (with President Trump) it makes all of the sense in the world.
    It's not ridiculous at all. Heads are the first to roll for any company when revenues or profits decline. There will be no up tick in volume or cost savings for a U.S. based company since the homegrown costs to produce will still be much higher than the imported products (even after a new import tax is introduced).

    It will simply be a new revenue source for the government.

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    Quote Originally Posted by Lab Insight View Post
    It's not ridiculous at all. Heads are the first to roll for any company when revenues or profits decline. There will be no up tick in volume or cost savings for a U.S. based company since the homegrown costs to produce will still be much higher than the imported products (even after a new import tax is introduced).

    It will simply be a new revenue source for the government.
    Absolutely ridiculous, keep hurling stones. We have not gone anywhere!!! Wait and see, we will prove you wrong.

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    Quote Originally Posted by Plausible View Post
    Absolutely ridiculous, keep hurling stones. We have not gone anywhere!!! Wait and see, we will prove you wrong.
    How is that hurling stones? Because I'm a realist? Let me guess...you're a union member.

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    Blue Jumper no up tick in volume or cost savings for a U.S. based company .......................

    Quote Originally Posted by Lab Insight View Post

    There will be no up tick in volume or cost savings for a U.S. based company since the homegrown costs to produce will still be much higher than the imported products (even after a new import tax is introduced).

    If a new import tax will be geared to individual industries and charged separately to them, there will be no escape for inexpensive lab work done overseas.

    If you want the jobs and companies to come back to your county, a government will have to adapt separate rules to different manufacturing industries and not just introduce some flat new general customs tariffs.

    If their is a will, there is a way. There are presently over 35 million people on food stamps and over 40 million unemployed in the USA, which is a tremendous burden to a country. Canada is usually at 10 % of the US figures.

    There seems to be a global trend, started by individual governments, to end the global ruling by the monster corporations, that have started to dominate whole commercial sectors world wide, for their own interest, by eliminating competition.

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    Quote Originally Posted by Chris Ryser View Post
    If a new import tax will be geared to individual industries and charged separately to them, there will be no escape for inexpensive lab work done overseas.

    If you want the jobs and companies to come back to your county, a government will have to adapt separate rules to different manufacturing industries and not just introduce some flat new general customs tariffs.

    If their is a will, there is a way. There are presently over 35 million people on food stamps and over 40 million unemployed in the USA, which is a tremendous burden to a country. Canada is usually at 10 % of the US figures.

    There seems to be a global trend, started by individual governments, to end the global ruling by the monster corporations, that have started to dominate whole commercial sectors world wide, for their own interest, by eliminating competition.
    The market share domination effect continues and is in fact increasing at a large scale. Trends are now becoming the norm. The EssiLux merger is just one and is big news to us for obvious reasons.

    Fragmentation in any market is being corrected while being coupled with vertical integration, which makes investors satisfied and fulfilled. It's not going away anytime soon, so we either get on board or get left behind in the ugly aftermath.

    https://en.wikipedia.org/wiki/List_o...d_acquisitions

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    Blue Jumper

    Quote Originally Posted by Lab Insight View Post

    The market share domination effect continues and is in fact increasing at a large scale. Trends are now becoming the norm. The EssiLux merger is just one and is big news to us for obvious reasons.
    Good point ............................

    So we can now watch what is happening to a profession I was born into, have learned it and been living, working in it all my life, from retail to lab and to manufacturing.

    The most visible result of those giant mergers are the oil companies that have converted all their gas stations from the small car repair garages to full fledged self service gas stations, with an added convenience store.

    The Essilux merger is the perfect combination to speed up the takeover and domination of the optical retail market.They are now merging with an emporium of optical retail stores.

    "Luxottica's international expansion has developed its geographic footprint worldwide. The Group’s global wholesale distribution network covers more than 150 countries and is complemented by an extensive retail network of approximately 8,000 stores, with LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific, GMO in Latin America, Salmoiraghi & Viganò in Italy and Sunglass Hut worldwide."

    (source:
    http://www.luxottica.com/en/about-us/company-profile )

    8,000 stores at your fingertips is not nothing, but a powerful instrument to play the music you want to be played.

    One of the two main objectives of the newly merged corporation is to further develop on line eyeglass sales.

    Pure logic would point towards those 8,000 corporation retail stores, to also become service centers for on line sold eyeglasses by the corporation.

    As far as I understand regular existing optical retail stores have in general refused to give any service on any online purchase eyeglasses, as we can see from many posts right here on OptiBoard.

    Just an idea for any possible future that could make sense.
    Last edited by Chris Ryser; 02-25-2017 at 11:01 AM.

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    Quote Originally Posted by Chris Ryser View Post
    Good point ............................

    So we can now watch what is happening to a profession I was born into, have learned it and been living, working in it all my life, from retail to lab and to manufacturing.

    The most visible result of those giant mergers are the oil companies that have converted all their gas stations from the small car repair garages to full fledged self service gas stations, with an added convenience store.

    The Essilux merger is the perfect combination to speed up the takeover and domination of the optical retail market.They are now merging with an emporium of optical retail stores.

    "Luxottica's international expansion has developed its geographic footprint worldwide. The Group’s global wholesale distribution network covers more than 150 countries and is complemented by an extensive retail network of approximately 8,000 stores, with LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific, GMO in Latin America, Salmoiraghi & Viganò in Italy and Sunglass Hut worldwide."

    (source:
    http://www.luxottica.com/en/about-us/company-profile )

    8,000 stores at your fingertips is not nothing, but a powerful instrument to play the music you want to be played.

    One of the two main objectives of the newly merged corporation is to further develop on line eyeglass sales.

    Pure logic would point towards those 8,000 corporation retail stores, to also become service centers for on line sold eyeglasses by the corporation.

    As far as I understand regular existing optical retail stores have in general refused to give any service on any online purchase eyeglasses, as we can see from many posts right here on OptiBoard.

    Just an idea for any possible future that could make sense.
    I project that online sales have peaked already.

    IMHO what will happen now is for the new company refocus, re-energize and to maximize the 'optical experience' at the retail level in their stores where they have the opportunity to up sell and provide maximum bang tor the buck and increase their average selling price per pair.

    This is where independents need to pull up their socks and match 'the experience' to maintain competing on the same level.

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    Redhot Jumper I project that online sales have peaked already.

    Quote Originally Posted by Lab Insight View Post

    I project that online sales have peaked already.

    ......and I have a bit more faith in the planning ability of the corporation when it said, and I quote in their own words:



    Quote Originally Posted by Essilor

    Jan 17, 2017 7:55am


    While Asia and Latin America are seen by the companies as potential growth markets, e-commerce will also be a top priority.
    Very clear and simple............................

    I have been following the e-commerce trends very closely and there is definitely no peaked already, it will continue to peak into the future.

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    Why do you make personal attacks during a conversation?

    Quote Originally Posted by Lab Insight View Post
    How is that hurling stones? Because I'm a realist? Let me guess...you're a union member.
    I was reading the thread and wondered why you hide behind a psudo-name and continue to be so attacking when debated? I think it might be "lack of insight"

    Take a happy pill and see how the world looks.

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    Quote Originally Posted by Craig View Post
    I was reading the thread and wondered why you hide behind a psudo-name and continue to be so attacking when debated? I think it might be "lack of insight"

    Take a happy pill and see how the world looks.
    Thanks so much, I can see the world much better now.
    Last edited by Lab Insight; 02-26-2017 at 08:47 AM. Reason: took my happy pill

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    Quote Originally Posted by Lab Insight View Post
    Thanks so much, I can see the world much better now.
    Glad you want to play nice and respectful vs arrogant and attacking!

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    Quote Originally Posted by Craig View Post
    Glad you want to play nice and respectful vs arrogant and attacking!
    Takin' the high road Dr. Phil.

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    Redhot Jumper among the optical Forums the Australian one seems to have closed its doors.

    Now that you seem to have settled your friendly argument, we can get back to the original discussion.

    I have worked all Sunday so far on my optical website listing which is part of my website.

    The interesting part is that I had to remove over 50 optical supplier listings that are not active anymore. These sites have not been updated, are not rated anymore and no data is available on them. A pure sign of good times.

    Even among the optical Forums the Australian one seems to have closed its doors.

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