Chinese Labor, Cheap no More ?

[properchopper]

A year or so ago I needed to replace the left front corner lamp on my Explorer. Ford dealer wanted $89. I bought one from an e-bay site for $20 delivered - indistinguishable from right front Ford product.

I've bought three CC Hydra 240's in past years for $240. 3 X $240 + shipping= $765 shipped . I've bought three T-180's for $77 (for fairness, round up to $100 shipped).

What would you do ?

American cornering lamp - $89____
Chinese cornering lamp - $20____
not drink and back out of carport ___

three CC Hydra 240 - $765___
three T-180 - $300___

( a quick look around my apt : the only "'made in USA" products, basically, are my vintage Advent speakers( Do I get a hooyeah, Douggie? ) and three Insane and three
Aeromarine boats.)

What's a girl to do ?

[properchopper]

This just in :

http://www.nytimes.com/2012/02/19/te...gewanted=print

[Flying Scotsman]

To all, watch the film LOCAL HERO, it is a brilliant film as it shows greed and redemption and great humour and of course it was written and directed by a Scot!!

http://www.youtube.com/watch?v=R4WQZbGMrl4.

http://en.wikipedia.org/wiki/Local_Hero

Douggie

[Prop-a-Gator]

I came across this interesting thread while searching for the the jet"chopper". lol Thanks properchopper!

I work for a major American mfr, and collaborate with collegues and suppliers from around the globe daily - including China. I just want to give my perspective/opinions without the expectation that all (or any) agree.

To the original topic, it is easy and typical to talk in terms of average salary by country. In reality, it is the local wage level that impacts cost for any particular factory - and ultimately the company and the cost of their products. Over the past couple of decades it has been eastern/coastal China that has seen explosive growth. The std of living is certainly rising in these areas. I have heard the Shanghai area will see salaries grow to be comparable to the southern US in 5 years. I saw more BMWs and Mercs on the streets there than in LA. (The contrasts, contradictions, & shear scale will make your head spin.) Of course the vast majority of Chinese live on much much less than the wages in these high growth areas. How do you even compare salaries with a family that lives in a village growing their own food and making much of what they use? BTW... I wouldn't mind 3 generations of my family living together and living off the land if I could maintain a comfortable std of living. I just don't have the work ethic to do it.

As Keith said, companies can (and have) build factories elsewhere - including central/western China, Thailand, Vietnam, - even the USA. It also depends on why companies are placing their factories where they are. If it's mostly for cheap labor, then yes, they will continue to chase that source around the globe. (even in this case, that is a huge over simplification) If it is to sell into the Chinese (or any) market, then it makes sense to build local factories. This is the same reason there are Honda, Toyota, and Hyundai factories in the US and GM factories in China. Paying to ship large product overseas puts you at a competitive disadvantage. Having your suppliers overseas complicates your supply chain logistics. Eventually you lose to local competition. When you lose in the only growing market, people at home lose jobs.

As far as imitation, it is rampant. One could say it's cultural. If it is, I'd say it partly stems from having to compete with a LOT of people for your piece of the pie everyday. But it's nothing new. If you are far behind, you imitate to catch up. When you are neck and neck, you innovate to lead. This happens everywhere, including US companies competing with each other. Regarding the copying of protected IP, it's illegal and is the role of govt to stop. Corporations do take their own steps to secure IP when working overseas. It is a risk.

The best way to fight imitation is innovation. Anyone watch the NFL? copycat league. If you want to win, you get the best people and you do something that no one has seen. I truly respect everyone's opinion, but I don't buy the doomsday predictions. This country still has some kick @ss in it. I wouldn't give up yet.

my ¥0.13 ($0.02)

[sturco]

I can tell you that I work for a large USA machine tool builder supplying machines to most of the Tier 1 auto suppliers in China. This past year 2011-present we've seen many of the projects and parts being moved back to the US & Canada for Mfg. Quality issues, packaging and shipping costs and new labor rates being the issues. not to mention a bank of approx 6-8 weeks is needed by customers to cover the shipping times. In a JIT " just in time" Mfg mode for assembly that 8 weeks represents a lot of inventory costs !
Steve