For those not familiar with the jargon, NAP stands for the North American production ratio. Something that Toyota is being chastised for as of this writing and this particularly interesting and politicaly sensitive moment in the globalization vs nationalism debate.
All of this on the eve of their (Toyota) landing on the sacred beach head, that of the full size pickup truck. It would seem to me that while it is viewed by some as poor form to buy a car manufactured in Japan it is more palatable for that critic to buy the same car when manufactured in the USA and it is of little or no consequence to purchase other products manufactured by foreign corporations from across this “flat earth” that have never seen the light of day in the US, that is, until the cargo container has it’s door cracked open at the distribution center.
Toyota directly employs some 32,000 Americans and its dealers and parts suppliers have created some 386,000 other jobs within the USA. For some reason Toyota feels uncomfortable about this “NAP” number and strives to get from the current 55% level of autos sold here having been built here, back to a more politically correct 65%. Toyota chairman Fujio Cho actually looks for 75%. To do this it needs to break ground on an eighth manufacturing plant in the lower 48. The reason for this being the US has spawned a generation of consumers more in favor of transportation suitable for the every day commute around the US urban scene vs that modeled on one that conquers Bhagdad, Mogadishu or far flung Outlet Mall. No Kidding! It just so happens that Toyota leads in such transportation. What we should query is how many jobs has GM, Ford and Chrysler created in the same time frame. More likely their furloughs past and pending exceed these numbers by far.
Our tortured and collective conscience seems to extend only to automobiles. In my arena, the US has become accustomed to a cheaper product sourced for the most part off-shore and only a truly weak dollar, a lack of jet fuel or a strong bout of patriotism might change it. If only the flower world were viewed by the “NAP Ratio” Flowerbud.com would truly be in favor…at least by the politicians occupying the high ground in DC and hopefully by all others discerning. A Flowerbud purchase is every bit as good a value as a Toyota within its own particular tiny sphere, it differs however in that as a company we currently run a “NAP Ratio” of some 95%.
So who cares? Not one single solitary soul! Hence I am tempted to tell Toyota not to sweat it. Build ‘em where you like!
My competitors likely run “NAP” ratios of 30% or less and I hear no public discent and for sure I don’t see any of them about to encourage a greater “NAP Ratio”. The world really is flat after all. I am a passionate advocate of quality and believe you should buy it wherever you find it and at almost any price. I remain a believer in “you gets what you pays for”. In refering to a Toyota, that quality requires your paying a living wage and benefits to a US resident and thus a more expensive item should you want a NAP Ratio greater than 55%. Care not one whit about the “NAP Ratio” and many others can build you equaly as fine a car…and sail it across the ocean for you!
As urgently as Toyota invests in yet another US community, be it in Tennessee, Arkansas or North Carolina Flowerbud places its orders with US growers and farmers along the length of the west coast…all the while feeling the strong desire of a purchaser pushing for pricing, product and producers outwith the confines of “NAP Ratio”. While we are 95% NAP at the advent of 2007 I will be fascinated to see the numbers in 2010. I believe the competition have proved it a moot point. The consumer for the most part is driven by a greater concern than NAP. Price? Yes and No. Service and quality? You betcha! Flowerbud wins, as does Toyota…NAP or no NAP.
Hola Mark-
I am Arequipa, Peru and I just finished a four hour class in spanish. I am waiting for lunch to be served and I thought I would find out what you have been writing about.
I just finished reading your Toyota article. I remember the day when people made the argument that US workers couldn´t build a quality product. So do people look on the door plate of a Toyota to see if it and it´s parts were made in Japan? No they do not. Which tells me that it is the leadership and expectation the rules the day between these two competetors, say a Ford and Toyota.
I´ll be away from the farm for another coulple of weeks. I hope you got through the FEDEX trouble and you are still alive.
Carlos