End of cheap made-in-China era?

[Vizier87]

**broken link removed** you are.

Many companies are striving to stay profitable by shifting factories to cheaper areas farther inland or to other developing countries, and a few are even resuming production in the West.

"China is going to go through a very dramatic period. The big companies are starting to exit. We all see the writing on the wall," said Rick Goodwin, a China trade veteran of 22 years, whose company links foreign buyers with Chinese suppliers.

I'm just curious that there's a Rick Goodwin. Any chance Nigel is closely related to him?

 

[HiTech]

I'd love to see production return to the US again. I for one wouldn't complain when paying a higher price for something made with quality, pride, longevity, and reliability. But there's the catch... we Americans need to apply those ideals in the workplace everyday regardless if we are producing automobiles and ships or even a kid's toy. Too many American's whining about how hard they work and are underpaid and over taxed, etc. Most of the time it's exaggeration on their part. Unions need to get a realistic grip also.

 

[BrownOut]

I heard the same thing 10 years ago, and yet the west has only continued to hemorrhage jobs ever since.

 

[colin55]

Americans get paid too little for most of the jobs. Being paid less than $15.00 per hour is below the poverty line. The cost of living the US is exactly the same as in Australia and the minimum wage in Australia is $15.00 per hour.
I don't even know how someone can live on $15.00 per hour.

 

[ben7]

The 3C's: Cheap China Crap

There is definitely a difference in quality between the cheap china crap stuff, and older stuff that was made in the good o'l USA, or in Japan. I have a vintage Sony AM/FM radio, model 8F-51W, it has 9 transistors, and an internal antenna! It picks up stations very very very well, the stations sound crystal clear compared to all the cheap ones made in china today.

 

[Sceadwian]

HiTech, I agree with you completely, I work at a machine shop that does automotive and some aerospace work, nothing big and fancy mostly bread and butter parts. I hear every day complaints about 'not getting paid enough to do this' and how people wish they could return to the good old days when companies threw money at them for parts that weren't worth what they were getting paid because of the way buisness used to be done. No one wants to grow up, suck it up and adjust to the changing world.

Colin, I'm not sure where you got those numbers from but the poverty wage level in the continental U.S is $5.20 for a single person home, according to the Department of Health and Human services. 15 dollars an hour is WAY above the minimum needed to survive. If you don't know how someone can survive on 15 dollars an hour you need to seriously rethink what it means to survive. I make less than 15 an hour and of course I wouldn't mind making more and eventually will I can get by just fine with what I make for food clothing shelter, PC's high speed internet, netflix digital cable, all the necessities in life...

 

[cr0sh]

I want to see manufacturing return to America too...

...with 100 percent automated robotic factory and machining systems. Keep the humans out of the hands-on manufacturing part of it as much as possible. Retrain them instead to service the systems in the factory (until that part is automated as well, of course).

Its inevitable that it will happen anyway - so we should be doing it now instead of getting in the way for largely nostalgic reasons.

Robotic Nation, by Marshall Brain

 

[colin55]

In Australia a small apartment is nearly $200 per week, cable and phone is $30 per week, food is $100, car is $200, clothing is $30, electricity water and gas is $70 per week, tax is $60 per week. What about entertainment, hobby supplies, reading material. How can you live on $15.00 per hour? My eldest daughter gets $1,100 per week and my youngest gets $24.00 per hour (part time).
Stick up for yourself and tell the boss what you are really worth.

 

[colin55]

Talking about automation - I have designed a project that uses individual boxes with clear doors that only open when a card is inserted and the cost of the item is taken off the card. This reduces theft, tampering and damage. The theft in most shops is over 15% and our product pays for itself in 12 months. This is automation taken to the retail level.
You will also find supermarkets are introducing self-service exits, as the biggest detest in a super-market is waiting in line with your trolley of groceries.
All these things are aimed at getting rid of employees as they are the biggest bug-bear with all organisations.
As one employer said to me: "Business would be fantastic if it weren't for the staff."

 

[Mikebits]

15 bucks an hour is $2400. a month. Average rent in San Diego is $2k. so that wage is a bit low for one person. Most people I know have a dual income (spouse or roommate) so then $15. an hour x 2 is workable. Consider yourself lucky to live in a place that prospers so well Colin.

 

[bryan1]

Yea in comparison the pay rise I just got would be the same as an average American gets paid, we ain't called the lucky country anymore but with the mining industry still booming someone has to repair their gearboxs....

 

[colin55]

I looks like you earn, each day, what we others have to slave 7 days for.

 

[Reloadron]

15 bucks an hour is $2400. a month. Average rent in San Diego is $2k. so that wage is a bit low for one person. Most people I know have a dual income (spouse or roommate) so then $15. an hour x 2 is workable. Consider yourself lucky to live in a place that prospers so well Colin.

This is just one of those things. Now it has been quite some time since I was down under but looking at the US in general $15 an hour is about an annual income of about $32,200 a year. Here in the greater Cleveland, Ohio area you can live on that. Granted not in style but you would do OK.

However, we just took an extended weekend in my homeland of NYC (New York City) and vicinity. Prior to a Saturday on the beach the wife and I went grocery shopping for some essentials (guess it depends on what you call essentials).

12 pack of Corona Beer (they didn't have Stella Artois) was about $19 before the NY tax. Here in Ohio it is about $12. On the vine tomatoes were $3.99 a pound while in Cleveland they run $1.89 a pound. Bubba Burgers at $9.99 a box cost $7.99 here. The list goes on and on but you get the idea. The 500 miles between NYC and Cleveland represent a hell of a cost of living difference.

Having lived in Southern California (and loving it) there is little doubt in my mind a person earning $15 an hour would be hard pressed to enjoy a comfortable life style while here in Cleveland, Ohio you can do just fine on $15 an hour.

The buying power of $15 can vary greatly between NY and California. Hell, in many southern US states a person could fare pretty well on $15 an hour. However, as I pointed out that same person would be hard pressed to make it in other states.

Now as mentioned anyone in the US can walk right up to their employer and simply demand more money for their work. They are well within their rights to do so. Also, their employer is well within their rights to bid them a farewell and hire someone else willing to work for their old paycheck.

Enter China. For those who haven't noticed China doesn't exactly have workers rights. Imagine what $15 an hour would be in China. Hell, forget China. I am sure Mikebits has drifted south of San Diego to Mexico. Again, like China, no rules.

I saw mention of the US unions. Yes, the unions are part of the problem but the problem for the US to compete with China or even Mexico as to manufacturing is much bigger. There is a lopsided playing field. Here we have rules that manufacturers must play by, while other places have no rules. I watched as cities like Cleveland and Pittsburgh in the rust belt died with the US steel industry. We couldn't make steel cheaper. The real ***** here is the US allowed this to happen. There was a combination of profit driven greed and a failure of checks and balances that allowed things to get as they have.

So what if there is a move away from Chinese goods made by cheap labor. There is still no shortage of cheap labor in the world.

Just My Take
Ron

 

[Vizier87]

hmm. a lot of insight there. But we still don't have Nigel's confession yet.

 

[Mikebits]

hmm. a lot of insight there. But we still don't have Nigel's confession yet.

Huh? ..................................

 

[Vizier87]

Huh? ..................................

see post #1 Mike...... There's Rick Goodwin in the article, I'm just curious if Nigel's related to him.

 

[Reloadron]

I cann't agree with some of the views.

Then feel free to disagree by stating a view.

Ron

 

[Reloadron]

I would say if you pay a bit more, you can get great products from China.
Good quality product costs.
If you wanna say **** China products, you'd better **** trader from your own country to the most.

Ah, OK, I can see that. Hell, I can agree with that. Looking back to the beginning of this thread and the title:

End of cheap made-in-China era?

What my only post (till now) focused on was that if the thread title were to hold true it would matter not. That in my opinion, looking at the US, the low priced goods from China would be replaced by low priced goods from somewhere else. Let's face it, there is a market for poorly made goods as well as a market for well made goods regardless of origin. As long as the demand is there, there will be a flow from wherever. That was my view anyway.

Ron

 

[ben7]

Everything nowadays is about saving money. Not one ad in the newspaper that doesn't say "save xx%" or "xx% off!". Not one TV commercial that doesn't say "save xx%" or "xx% off!". Not one ad on the internet that doesn't say "save xx%" or "xx% off!".
Not one ad- ok, I think you should get the point now.

 

[kiriakos-gr]

Let's face it, there is a market for poorly made goods as well as a market for well made goods regardless of origin. As long as the demand is there, there will be a flow from wherever. That was my view anyway.

Ron

Nop .... the proper word are " Greed " ..

NIKE has no reason to have an factory in Pakistan , and shell an pair of shoes for 200$ in US or elsewhere .

" Greed " are the key world , and the reason behind it , are all the stocks that you have hidden on you safe box... (generally speaking )

Cash them out and invest on your own business , or on your next door neighbor business.
Thats the only way , to restore things , and find back our humanity .