I'm starting to see a lot of brands move overseas without jeapordizing quality. Meanwhile, other brands are moving and sacrificing their entire reputations.
Stanley's FatMax chisels used to be made in England. Now they're made in China. Their "demo" screwdrivers (which are totally awesome) were made in England, and now China. The thing is, the two versions of the tools look and feel identical. Granted I still reached for the "made in England" version and left the others on the shelf, but still.
My GearWrenches are made in Taiwain, and they're made very well. My Craftsman ratchet is made in the US and is a barely better than those bundled in Allied "all in one auto tool sets."
I prefer buying made in Taiwan products over made in China only because they have a better track record. My point is that this may not be due to the manufacturing process but the individual brands and the standards that they require.
My Hitachi cordless drill was made in China, as was the Craftsman that I hated and returned. If Craftsman's drills were made in Taiwan or even in the US/Canada/England, I still wouldn't buy them because they're not constructed nor designed well.
I tested out Black & Decker's VPX system in HD when it first came out, and I thought it was disgustingly cheap and flimsy. The driver felt less durable than toy tools of that size. This wasn't even after they were handled by rough customers, this was less than five minutes after the batteries were removed from the chargers and the tools were set to display.
To compete with POS tools, their low prices and hence consumer attraction, once reputable brand names are cheapening their designs. No longer are they focusing on durability and reputation. They're instead focusing on flashy features and salability. How many tools compete on the level of Bosch's PS20 as opposed to the level of Black & Decker's $30 designs.