Happy 4th of July and welcome to another great edition of “Ask Rick”. Rick Schmidt is never one to shy away from the hard hitting questions and this month was no exception. After last months bombshell about pricing and how COVID-19 is affecting the costs of everything, there were a lot of listener questions about the parts themselves……and where they really come from. He may need to have all listeners sign a non disclosure agreement after this interview, but he definitely let the cards fall where they may.
Here was the big discussion (and myth debunk): Aren’t all aftermarket parts made in just three plants in Taiwan, and they’re really all the same no matter the brand? Rick laid out the reality of this eight ways from Sunday. The answer is complicated to say least. Are there really 3 factories in Taiwan stamping out all of our favorite parts? No, of course not. The amount of tooling required to do all of that would take up the state of Rhode Island. Do the many multiple factories – who are competing with each other – actually have to competitively work together? Actually, they do. Shipping of parts is a key reason however.