What Comes Around Goes Around...

News that do not fit in elswhere

Moderators: b1o, jkerr82508

iceycooler9
Viking
Posts: 29
Joined: 16 Mar 2010, 01:30

What Comes Around Goes Around...

Postby iceycooler9 » 28 Mar 2010, 17:13

http://www.mercurynews.com/business-hea ... i_14766613

and comes back to bite you in the *** later. Exactly what our greedy U.S companies deserve. They ditched Americans for Chinese workers for a cheaper pricing, moved almost everything over there except the headquarters where the upper management works. They saved many bucks, but they are going to start losing all of it in the coming time.

At this point, made in America could be a marketing tool.


Should this be a lesson for future generations?

User avatar
viking60
Über-Berserk
Posts: 9351
Joined: 14 Mar 2010, 16:34

Re: What Comes Around Goes Around...

Postby viking60 » 28 Mar 2010, 17:39

Very interesting article. I am a bit uplifted by the fact that tha American companies not are contributing to the chinese censorship anymore. This is how the market works. Get out of there tell the people it is beacuse you will not participate in the oppression of the Chinese people. And the Chinese income will suffer.
I think that once they learn that lesson they will come smiling back to the American companies and sa "yes velly good". Because they sure know how to count money.
But they are in the area of beeing the largest economy in the world right now, and getting arrogant about it. If the Americans and Europeans stop trading with them that economy would suffer badly.
There are many good reasons why we should not alow Chinese products: Pollution and human rights, top the list.
They have to improve a lot - but to be fair to them - they are able to adapt to most conditions.
China will be a leading economic superpower for many years if they play by the rules- and stay predictable. And so will India.
Manjaro 64bit on the main box -Intel(R) Core(TM) i7 CPU 920 @ 2.67GHz and nVidia Corporation GT200b [GeForce GTX 275] (rev a1. + Centos on the server - Arch on the laptop.
"There are no stupid questions - Only stupid answers!"

User avatar
R_Head
Berserk
Posts: 2819
Joined: 17 Mar 2010, 15:40

Re: What Comes Around Goes Around...

Postby R_Head » 29 Mar 2010, 13:16

There several reasons the manufacturing is moving out of the USA... I do work in the industry and we do get pissed off when we hear crap like this. But here is some of the reasons why...

1) People in the USA stop caring to produce a quality product (a lot of people comes to work for a paycheck).
2) Labor is backed up by Unions that make sometimes unreasonable negotiations.
3) Cost of Living is rising, therefore higher wagers.
4) EPA and Taxes (Carbon taxes, Energy consumption, Waste Disposal, etc...)

The advantages of going overseas?

1) Manpower is cheap as heck
2) No benefits to deal with
3) No EPA, very low Taxes (Trash their house, not ours)
4) No need for machinery (the price of 1 robot, you can get 30 people to do the same thing for less)

When it comes to compete is really hard when you get a quality product for much less.

As an example, look at GM, Chrysler and Ford. They have to cut on all corners in order to provide a competitive price. While in Japan, Korea, China and so on, they pay almost slave wagers to produce the goods that we love so much.

User avatar
viking60
Über-Berserk
Posts: 9351
Joined: 14 Mar 2010, 16:34

Re: What Comes Around Goes Around...

Postby viking60 » 29 Mar 2010, 13:30

Yes you are so right.
This will go on but sooner or later the workers in those countries will expect a higher standard of living too, making the products expensive. And you always have the freight costs as a buffer.
Goods that are easy to freight will be produced in Asia for many years to come, unless there is a boycott. They just are much cheaper. But the carbon taxes will sooner or later come in China too. The world cannot accept the kind of pollution that is going on there, forever.
It might be we in the "western world" will have to develop technologies and do engineering on a high level, and develop new jobs there. The industrial days could be gone for good.We have to be flexible. We have to get out of the mines an in front of a computer :) .
Image
Manjaro 64bit on the main box -Intel(R) Core(TM) i7 CPU 920 @ 2.67GHz and nVidia Corporation GT200b [GeForce GTX 275] (rev a1. + Centos on the server - Arch on the laptop.
"There are no stupid questions - Only stupid answers!"

iceycooler9
Viking
Posts: 29
Joined: 16 Mar 2010, 01:30

Re: What Comes Around Goes Around...

Postby iceycooler9 » 29 Mar 2010, 15:34

R_Head wrote:There several reasons the manufacturing is moving out of the USA... I do work in the industry and we do get pissed off when we hear crap like this. But here is some of the reasons why...

1) People in the USA stop caring to produce a quality product (a lot of people comes to work for a paycheck).
2) Labor is backed up by Unions that make sometimes unreasonable negotiations.
3) Cost of Living is rising, therefore higher wagers.
4) EPA and Taxes (Carbon taxes, Energy consumption, Waste Disposal, etc...)

The advantages of going overseas?

1) Manpower is cheap as heck
2) No benefits to deal with
3) No EPA, very low Taxes (Trash their house, not ours)
4) No need for machinery (the price of 1 robot, you can get 30 people to do the same thing for less)

When it comes to compete is really hard when you get a quality product for much less.

As an example, look at GM, Chrysler and Ford. They have to cut on all corners in order to provide a competitive price. While in Japan, Korea, China and so on, they pay almost slave wagers to produce the goods that we love so much.


and have you put in an account that when people here don't have jobs, they don't have money, and then they can't buy your product.

the American companies are just developing the Asian economy, and like viking said, eventually once they get to social standards, your not saving any money anymore.

and btw you say "quality product" COME ON everything is made like **** today!!!!! There is no exchange of cheaper labor for more quality, because the greedy upper management is going to both use slave labor and cutting corners.

As an example, look at GM, Chrysler and Ford. They have to cut on all corners in order to provide a competitive price. While in Japan, Korea, China and so on, they pay almost slave wagers to produce the goods that we love so much.


i don't see how GM, Chrysler, Ford (or if we go into Europe for that matter Mercedes, Audi,Volvo, BMW) are giving you less for the price. And to be honest, cars in China are made like crap, Korea, what care are made there of any importance? Japan is a top competitor but it's trending down right now due to Toyota shooting themselves in the foot and the recalls that Honda also announced. If anything, i think Ford is going to be the next winner in the next couple of years.

User avatar
R_Head
Berserk
Posts: 2819
Joined: 17 Mar 2010, 15:40

Re: What Comes Around Goes Around...

Postby R_Head » 30 Mar 2010, 19:08

As far cars... The darkest days in the Auto Industry were in the 70s and 80s. Cars, on any model and make they were junk. US build cars had the bigger punch, could not change rapidly to new technologies because it cost more to change and competing with Japanese cars that were way cheaper. Anyway, is coming around in a long way. I do drive US cars since the 1st time I earned my lic, the worst 2 cars we ever owned in my house was a Honda and a Toyota. Go figure! Anyway, quality can be achieve on any country.

This is an example of Asian quality....

Is a fact, that workers spend their lifetime doing a single task that becomes the masters at that task. They can not multitask like we do. When it comes to inspections it takes 4 times the manpower to inspect one item and they work by inspecting a single section of that item, day in and day out.

We had people going to Asia to see the operations. They said that is unbelievable how they have groups of people that does one single thing and the pay is not the greatest either. For example, a group of 10 workers making baggies with rivets and tools for the next shift assembly workers can work and a group that clean after the installation workers do their work... Here in the USA the assembly worker, makes it own baggie, clean after themselves, makes spread sheets, fills work orders, install the assembly, goes to meetings, etc...


I am one of those, but I get paid really good :D


Return to “General News”