2 of 6
Mrs. Grossman's
Mrs. Grossman's
Andrea Grossman with her son Jason
Headquarters: Petaluma, California
Products: Stickers, activity sets, labels
For 35 years, Andrea Grossman has held out against going to China to have her products made more cheaply. Two years ago, when her son Jason told her that without China they may go bust, Andrea retired from the company she had founded.

"It's been a valiant fight and it probably breaks her heart that we're talking about this ," said Jason Grossman, who took the helm from his mother in 1989. "We've fought going overseas for many years. But that has become a huge downfall."

"We have seven printing presses and 75 employees," he said. "I went to China for the first time this year. They can print our stickers more cheaply. That's a big deal."

More than 90% of Mrs. Grossman's products are still made in the U.S. but the company will soon offshore production of new products.

"I am a strong believer in domestic manufacturing. It's a huge mistake to let this slip away." But higher raw materials and labor costs plus higher taxes make doing business here too hard. "Last year we let go of 50 people. We're holding our own even though our revenues fell 40% last year."

NEXT: Zippo Manufacturing Company

LAST UPDATE: Aug 30 2010 | 10:56 AM ET
American Apparel in jeopardy Seller of 'Made in U.S.' casual clothing warns it may not stay in business. More
New York schmear tacticsNew York state is ramping up enforcement of its sliced bagel tax. More
Small business loans need cash Despite efforts $1.5 billion in federal funding is stuck in Congress. More