Expanding Correctional Industries: Factors to Consider in Choosing Import and Export Markets

• NCJ Number: 137337
• Author(s): G S Ingley
• Date Published: 1992
• Length: 31 pages
• Sale Source: American Correctional Association
• Publication Type: Survey
• Language: English
• Country: United States of America

Annotation

When examining expansion opportunities into import and export markets for correctional industries, several components must be understood such as import penetration by industry, labor intensivity, currency exchange rates, jobs lost to imports by industry, and changing price competitiveness.

Abstract

The percentage of products manufactured overseas that are sold in the United States is measured by import penetration ratios, ratios indicating the quantity of production in an industry that has been lost to factories abroad. Labor intensivity, given in manhours of work per product, is the measure of how many minutes or hours of work are necessary to make an item. Understanding prevailing world monetary conditions, including exchange and interest rates, is crucial to seeing labor and production in their proper context. Many correctional industries can offer low-cost inmate labor. However, if currency devaluations reduce the average wage per hour including benefits, correctional industries must strengthen their appeal to attract importers and exporters into using prison-made goods as a viable supply source. Correctional industries must have several engaging features to offset drawbacks such as shorter workdays in prison shops. Correctional industries can offer U.S. manufacturers many benefits as partners in production. These benefits include low labor costs, inexpensive land and building space (often government-subsidized), customized product lines, training, and training reimbursements and tax credits. Correctional industries have proven to be ideal partners in production sharing operations, as well as in joint partnership ventures with private sector manufacturers. By producing goods from U.S. industries already dominated by imports, correctional industries do not compete unfairly against domestic markets. Strategic planning for developing import and export markets for correctional industries is discussed. Attachments provide additional information on U.S. imports and exports.