Farouk Systems Reshores to United States

Farouk Systems, a $1 billion manufacturer of professional hair care and spa products, moved all of its production from South Korea and China to the United States and Houston, Texas, in July 2009.

Owner Farouk Shami said the decision was clear.  Outsourcing led to a loss of control over manufacturing and distribution, and although raw materials and labor costs in the U.S. are higher than in Asia, there he was forced to spend about $500,000 a month to fight counterfeiting.

“We’ll make more money this way because we’ll have better quality and better image”

-Farouk Shami, Owner Farouk Systems

Farouk Systems expected to hire 1,000 new workers to produce hair appliances at its new Houston manufacturing facility and an additional 4,000 workers within 3-4 years.