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, a $1 billion manufacturer of professional hair care and spa products, is continuing to expand its Houston, TX facilities. In September 2011, Farouk Systems purchased 15 acres of land next to its existing facility in order to eventually increase its warehousing space to 1 million square feet. Farouk Systems is expanding its warehouses in order to better prepare for increased exports to Europe and South America.
“We are celebrating our 25th anniversary, and our motto is ‘be safe, be beautiful and buy American.’ We need everybody to buy American – that’s what will stimulate the economy.”
-Farouk Shami, Founder of Farouk Systems Inc.
Farouk Systems in Houston currently employs around 2,000 employees and plans to hire at least 300 more within the next year.