| Author |
Message |
oileah
Newbie
Joined: May 20, 2006
Posts: 5
Status: Offline
|
 Posted:
May 20, 2006 - 10:44 AM |
 
|
| Post subject: Western Manufacturing - Is it alll going to China? |
Is there any job security for the western world in manufacturing?
What is your opinion? |
|
|
|
|
Magnolia
Board Biatch
Joined: June 01, 2004
Posts: 31071
|
| Posted:
May 20, 2006 - 10:58 AM |
|
|
depends on the sector. |
_________________
BOYCOTT BENSON SALON |
|
|
|
|
CoffeeHawk_0
Board Buddha
Joined: July 14, 2005
Posts: 14380
|
| Posted:
May 20, 2006 - 11:31 AM |
|
|
Ironically, it's up to the consumers and CEO's. The CEO's are pushing everything to China to save a buck. Currently quality, time, and other factors are suffering in some sectors in China (normal for any growing economy with so many new industries, not an insult, BWM quality sucked in the 1970's as did Hyundia's in the 80's, etc.). Westerners are buying up Chinese made goods and ultimately decide what ratio of price-to-quality they prefer. For now, low cost is winning. Western workers are still being pushed to make high quality goods, which means higher cost, while their CEO's are saying screw quality and save cost. Oddly, the opposite was true for cars; Lexus and BMW and Mercedes are putting Cadillac and Lincoln out of business, for a $15K premium. All sectors in China will eventually reach western quality standards, and likely still be lower cost, then western workers will be screwed. For now, the consumer can control the market, which ultimately drives the build-up of Chinese manufacturing. This is also why the west and China are constantly arguing about tarrifs, floating the Yuan, etc.
Western consumers and lazy and ignorant and have a short memory. Jimmy Carter and Ronald Regan announced this change in the late 1970's and early 1980's. Jobs in the west must transform into higher technology ones, workers need more education, and western people that don't change will be forced into the service industry, which grows to support the higher paid technology (college educated) workers. Meanwhile, lower paying manufacturing jobs move to Mexico, China, etc. India seems to be in the middle, half of it is growing hightech, the other half wants to compete with China in low cost manufacturing. The whole global economy thing is here and growing before your eyes, it means massive change for everyone. Everyone needs to adjust, it's too late to complain. |
|
|
 |
|
lazyyorkie
LoopKicker
Joined: Apr 20, 2006
Posts: 990
Status: Offline
|
| Posted:
May 20, 2006 - 07:16 PM |
|
|
I think China will continue to be the worlds factory until end of 2010. Most Chinese manufacturers are under a misconception that cheap is the main criteria The European and American companies operating here will produce to an acceptable standard.
The West can afford quality and expect it, after a period of time consumers will realise that cheap is false economy. The danger as I see it for the UK at least, with regard to jobs is from Eastern Europe, such as Poland, we are seeing more and more migrant labour entering the country.
It is easy to rush to China and see this as a fix for improving margin however, there are several pitfalls such as, lack of skilled labour, shipping costs, quotas and import duty, then, add on the cultural differences, attutude to work bearing in mind salaries are low here.
I would hazzard a guess that India will over take China in time given, that most are well educated with a good command of English, at this time they can easily provide service industries such as , call centres etc. India will become Americas biggest Aircraft Carrier too.
It will turn around for sure as all things are a like a wheel turning. We dont have to go with the flow and in fact, I firmly beleive it is folly especially, when you have lost your customer base due to quality issues.
We are all jumping on a big band wagon which in time the wheels will surely fall off. |
|
|
|
|
phiota
Raver
Joined: Nov 01, 2005
Posts: 467
Status: Offline
|
| Posted:
May 20, 2006 - 09:14 PM |
|
|
I think the reason low cost countries are winning a larger share of the market is because of the power of the brand of products (CK, Ralph Lauren, Sony, BMW, Nike...) and of retailers (Walmart, Target, Macy's...) to ensure quality product (medium quality to high quality) no matter where the product is produced. Given proper management by manufactures (directed by brands) products manufacture place has become almost a nonissue for consumers around the world (except for very high end products).
John |
|
|
|
|
|
lazyyorkie
LoopKicker
Joined: Apr 20, 2006
Posts: 990
Status: Offline
|
| Posted:
May 20, 2006 - 09:36 PM |
|
|
You have a good point there John:-
The shoe industry was or is a classic example of transient manufaturing locations, moving to where there was a buck to save on labour.
I hear from Taiwan that the government there is giving tax breaks on re patriated money from Chinese operations, it shows that the low cost manufacturing base which China currently enjoys is, not only having an impact on the west.
The bottom line is that (IN MY VIEW) : The Chinese worker is subsidising the economy with, long and low paid work. When engineering companies are paying skilled machine operators 1000 per month in the SH area then, expect to see job losses in the west for a while yet.
It is clear thus far China needs the help of the west to improve quality and put in place proper levels of quality control however, under the table money will put paid to any system and you cant sweep communist ideals away so quickly, it is a whole ethos. |
|
|
|
|
|
phiota
Raver
Joined: Nov 01, 2005
Posts: 467
Status: Offline
|
| Posted:
May 21, 2006 - 10:01 AM |
|
|
The only thing with your analysis is that I am not 100% sure that China is any more inefficient then the US in Manufacturing or City/State/Federal Gov. becasue the US has such strong unions in those sectors that it maybe cancels out the advantage of the US system. Manufactures I do not think have to pay any money (or very little) to setup operations in China vs the union headache they get back home. I've mainly been in Shanghai but I am coming to think that maybe the US City/State/Federal government might not be so efficient either becasue also of the unions and ineffiency and high costs associated with them.
John |
|
|
|
|
|
|
|
| |
|
|
Forum FAQ
Search
Preferences
Watched Topics
Log in to check your private messages
Log in
