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RE: The China Price - 8/26/2008 6:54:34 AM   
TheHeretic


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quote:

ORIGINAL: meatcleaver

The American economy (on the whole) wasn't forward looking and producing products the world wanted (apart from the west coast and a few minor exceptions).



           Ri-ight...  Cuz it's not like the rest of the world wants to buy stuff like wheat and corn...

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Profile   Post #: 21
RE: The China Price - 8/26/2008 8:32:03 AM   
meatcleaver


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quote:

ORIGINAL: TheHeretic

quote:

ORIGINAL: meatcleaver

The American economy (on the whole) wasn't forward looking and producing products the world wanted (apart from the west coast and a few minor exceptions).
 

         Ri-ight...  Cuz it's not like the rest of the world wants to buy stuff like wheat and corn...
 

The US subsizes its farming and dumps a lot of produce on the underdeveloped world at low prices and the US government buys a lot of produce from its farmers to give as aid, as does the EU so its contribution to the wealth of the nation is debateable in financial terms. No doubt politicians on both sides of the Atlantic claim this to be strategic but it costs the economy, not adds to it.

< Message edited by meatcleaver -- 8/26/2008 8:33:56 AM >


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Profile   Post #: 22
RE: The China Price - 8/26/2008 8:49:57 AM   
Termyn8or


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Silv, I used to like our Johnson Carper couch. That was thirty some years ago, and really I was not aware that much of the it is now imported.

What gets me is that they can afford to ship the goods overseas and still under cut US prices. I do agree though that alot of the problem is with management. As US companies got rich they seemed to adopt a "take it or leave it" attitude.

I read an article a long time ago when it was the Japanese doing it. There was a statement that I will never forget "America companies use cost driven pricing while Japanese companies use price driven costing". Seems a bit cryptic, but I understand. At US firms the final drawings come off the board and everything is added up, and then the price is set. At a Japanese company the engineers are told "We are going to sell this product for X, make it happen". At least that's how it used to be.

I will speak from my industry now. When you buy new electronic goods, they are almost unservicable. Almost, and that is where I am, in that gray area. Whose fault is this ?  First of all for the manufacturer there is no fault, it is their job to build it. The main thing is to make it outlast the warranty and that is it. Literally, when you buy a new TV for example, literally divide the cost by how many months of warranty and consider that your monthly cost. If you get any more longevity on it than that, consider yourself lucky, and when it breaks down out of warranty and you actually find someone who CAN fix it, consider yourself even luckier.

I know enough about engineering to know they are built that way for the most part because they have to be built that way. If you want a 42" TV that is only 4" thick, it would be ludicrous to think something like that would be easy to service. It is simply not possible to make it so. I realize that but sometimes it seems they go out of their way to make it more difficult. I will not officially lodge that charge against all manufacturers, but there are some cases when I am sure they do.

What they actually do deliberately is a crime, to make parts unavailable. Buddy of mine bought a new HDTV, a DLP last April. It broke down around Thanksgiving. I am not warranty authorized so of course I won't touch it, that's their job. He calls factory service and they come out, only to find that the part is not available. He is not the only one and the Ohio attorney general is on it, although what they can do to a company in China is unknown. Likely very little.

If you pay three grand for a TV I don't think it is unreasonable to get say five years out of it. In the case of a DLP you might have to clean the air filters and change the bulb every year but that is maintainence. Those bulbs I might add, cost about $200 each. Add that to the monthly figure when you figure cost of ownership, but in this case it is still under factory warranty and parts are simply not available, even after he took $200 out of pocket for a new bulb.

There used to be laws about making parts available for seven years or something like that, but those days are over. There also used to be laws keeping comglomerates from buying up all the media outlets and those days are over as well. You won't be hearing about how many people got screwed on the local news, the retailer that sells these things advertises there.

As a result, rampant consumerism in the US is not only filling the banks in China, but our own landfills. Three thousand dollars, three years old, throw it in the garbage.

I refuse to buy this crap, and if everybody else did this situation could be corrected. Remember commercials for TVs that used to tout reliability and servicability ? Now it is all about performance, no matter how short lived that might be. Consumers have been taught to only think in the here and now.

I remember another saying "A business grows too fast, falls too hard". Indeed, US manufacturers would resist growth. Not completely refuse to expand their scale of operation, but to think carefully before pouring money into more plants and machinery and whatever. As they thought about it, the demand for their product was sustained quite well. Years ago I worked for a Sony "Signature" dealer and we had waiting lists for certain models. Now people have to have everything RIGHT NOW and the Chinese are happy to oblige, wouldn't you ?

The way they did it in the old days resulted in a sustained, yet continuous growth. It meant job security for everyone involved. Now, just as the consumer wants everything right now, the manufacturers want every penny they can get right now. This is the root problem and it is pretty much world wide.

If a company needs to outsource, or even build a factory offshore to remain competitive, that's what they must do, for themselves, and for the stockholders. It is their job. In reality it is the government that created the problem with their free trade agreements. When they make it a viable, attractive option to outsource, that is what the company must do. Period. You are not CEO to think about urban strife, poverty or any other crap like that, your job is to make as much money as possible by any legal means, unless it is something that would significantly harm the company's image.

Do respond, or mail me about this post, because I want to see how others see it. I see things differently than most, and I know why. I am self and family educated, I try to see the big picture, and look at all sides of an issue, and if it seems that I am placing part of the blame on the US consumer, that's because I am, I intended to. People must take part of the blame on this issue, as well as the political mess we're in. We get crappy politicians because none of us can go out and find someone who would make a viable candidate who would be loyal to us, go through the long term plan, keep their nose to the grindstone as we elect them dog catcher, councilman, mayor, congressman, senator and eventually President.

We don't think long term, and people have lost sight of one logical fact. Say the door is open, go up to someone who walked through the door and say "You left the door open". They will deny it of course, but the fact is that EVERYBODY who walked through the door left it open because otherwise it would be closed.

This type of logic, that I might even call a "quality" is lacking in people these days. Like at work, I say where is X ? Guy replies "nobody took it". What is he saying, that it sprouted wings and flew away ? We are not talking about a screwdriver here, this was a big mirror.

It seems the logic is gone. Common sense was right with it when it left it seems.

T

(in reply to TheHeretic)
Profile   Post #: 23
RE: The China Price - 8/26/2008 4:39:42 PM   
Alumbrado


Posts: 5560
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quote:

ORIGINAL: meatcleaver

quote:

ORIGINAL: Alumbrado

The Chinese haven't taught the world anything, they have followed the European model which begat the American model,   which was embellished by the Japanese model, which was undercut by the Korean model, (who are complaining about the Vietnamese knockoffs...). 

In a few years, the Chinese military-economic model is going to upset a lot of people though. After all, 'Any place on the planet where there are Chinese people is the property of China...'


That's just a rediculous statement, one made out of fear rather than thought. The Chinese economy is threatening the west because the west has forgotten how to compete. Well the west never learnt how to compete, it controled the world markets but that is now changing and the west is going to have to come to terms with that. It is the west that sent people all over the world claiming land and resources that wasn't theirs, not China.

Actually having done some business with China in stainless steel products, I found the quality high as that of the west and that was through independent testing of the products.

EDITED TO ADD and those products were much cheaper and the manufacturer more flexible and reliable than western companies I dealt with.


The fact that the Chinese military considers corporations to be units of the military is old news, even older than the active duty 'technical' divisions securing the oil fields in the Sudan....

And the comment about 'wherever there are Chinese people', is from the Premier of China when addressing the Communist Party a few years ago, talking about Tibet, Taiwan, the Panama Canal, Phillipines, Pacific Rim, etc. in the context of expansionism... not a statement of my personal opinion.  
If you think he needs you to lecture him on his fear of the Chinese, I'm sure you can easily get in touch with him and set him straight.

Thanks for once again showing your almost complete denial of history, current events, the realities of politial economy, or anything outside of your dystopian revisionist fantasy world.

< Message edited by Alumbrado -- 8/26/2008 4:43:52 PM >

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Profile   Post #: 24
RE: The China Price - 8/26/2008 4:41:33 PM   
Alumbrado


Posts: 5560
Status: offline
quote:

ORIGINAL: SilverMark

In the industry I have spent the last 25 years in, the Chinese have taught the world much. You may think that they only learned from the Japanese or the Europeans but they haven't. Neither the Europeans nor the Japanese have mastered the intricate hand made skills in a mass manufacturing setting at a reasonable price with the efficiencies of the Chinese. If they had, their goods would be widely available in our industry and they simply do not exist. Yes,manufacturing was once dominated by first Europeans, then Americans and in some areas such as automobiles the Japanese but, I only speak of the industry I work within. Do not underestimate the abilities they possess based on a topical look at industry as a whole,you would be sadly mistaken.


None of which has a damn thing to do with anything I said, but thanks for not bothering to address what I did say.

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Profile   Post #: 25
RE: The China Price - 8/26/2008 6:10:41 PM   
ScooterTrash


Posts: 1407
Joined: 1/24/2005
From: Indiana
Status: offline
quote:

ORIGINAL: meatcleaver

Actually having done some business with China in stainless steel products, I found the quality high as that of the west and that was through independent testing of the products.

EDITED TO ADD and those products were much cheaper and the manufacturer more flexible and reliable than western companies I dealt with.
Hey ya MC, what's happening. This isn't completely directed at you, I am just taking your comment and running with it. If you had good luck purchasing finished components of decent quality from China, consider yourself lucky. In our case, we produce contract metal stamping, both from our main US facility as well as from our plant in Mexico. Piece price wise we are fairly competitive, win some, lose some, but competitive. Where we usually get our tail kicked is in tooling, specifically the stamping dies required to run the parts. When bidding a job, both those costs are divided over the projected sales volumes (several years worth), so to get awarded a job requires competitive pricing on both. The main reason tooling has been driven to the forefront is due to much of the tranferred (read; exported) technology that China has acquired from the western countries. Now China is producing cheap, or more economical to be politically correct, tooling. The initial cost is less and the lead times are very short because many of the Chinese tool shops employ an overabundance of labor where it is not uncommon for them to put 20 people on a single job just to get it in and out fast. To compete stateside for the manufacturing business we have been driven, and actually forced by customers on a few occasions, to purchase tooling out of China, citing them as a "low cost country". Bear in mind this also includes design as well as build. That all being said, NO, we have not had the good luck with quality you mention. Tools are very underdesigned and certainly not built to be as robust as what we are accustomed to from domestic tooling. Downtime is much higher due to the inferior designs, maintenance is higher due to the use of lower quality tool steels and startups of new jobs is much longer because they do not go through the same troubleshooting and foolproofing that domestic tooling does. In a nutshell, yes, the initial cost is less, but for the user (which is my manufacturing company in this case) the long term costs are higher due to less productivity and higher maintenance. What this had led to is a cheaper piece price and pass through tool cost for the North American OEM, but it comes at a price, as the producers of the parts is having to absorb the additional cost of using 2nd rate tooling to produce the goods.

As a footnote; Long term this is going to drive up the piece prices as absorbing the additional burdon is simply not profitable, so I fear that due to this much of the manufacturing business will go overseas as well. Of course then, we will be getting North American assembled consumer goods, assembled from inferior parts produced off of inferior tooling, but hey, they will be cheaper to produce. Hopefully the OEMs in the automotive and appliance sector will realize that they themselves are hastening the demise of manufacturing in this hemisphere and economically crippling their own customer base.  

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Formal symbolic representation of qualitative entities is doomed to its rightful place of minor significance in a world where flowers and beautiful women abound.
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(in reply to meatcleaver)
Profile   Post #: 26
RE: The China Price - 8/27/2008 2:52:57 AM   
meatcleaver


Posts: 9030
Joined: 3/13/2006
Status: offline
quote:

ORIGINAL: Alumbrado

quote:

ORIGINAL: meatcleaver

quote:

ORIGINAL: Alumbrado

The Chinese haven't taught the world anything, they have followed the European model which begat the American model,   which was embellished by the Japanese model, which was undercut by the Korean model, (who are complaining about the Vietnamese knockoffs...). 

In a few years, the Chinese military-economic model is going to upset a lot of people though. After all, 'Any place on the planet where there are Chinese people is the property of China...'


That's just a rediculous statement, one made out of fear rather than thought. The Chinese economy is threatening the west because the west has forgotten how to compete. Well the west never learnt how to compete, it controled the world markets but that is now changing and the west is going to have to come to terms with that. It is the west that sent people all over the world claiming land and resources that wasn't theirs, not China.

Actually having done some business with China in stainless steel products, I found the quality high as that of the west and that was through independent testing of the products.

EDITED TO ADD and those products were much cheaper and the manufacturer more flexible and reliable than western companies I dealt with.


The fact that the Chinese military considers corporations to be units of the military is old news, even older than the active duty 'technical' divisions securing the oil fields in the Sudan....

And the comment about 'wherever there are Chinese people', is from the Premier of China when addressing the Communist Party a few years ago, talking about Tibet, Taiwan, the Panama Canal, Phillipines, Pacific Rim, etc. in the context of expansionism... not a statement of my personal opinion.  
If you think he needs you to lecture him on his fear of the Chinese, I'm sure you can easily get in touch with him and set him straight.

Thanks for once again showing your almost complete denial of history, current events, the realities of politial economy, or anything outside of your dystopian revisionist fantasy world.


Alumbrado, you seem not to know or ignore all American history. It is America that travels half way around the world to attack other countries, not China. That is not revisionist, that is a fact. When China invades a Latin American country, bombs Toronto or starts lecturing America on human rights because they executed a black youth with learning difficulties who according to international legal organisations hadn't had a fair trial, I'll start agreeing with your version of history.

And under international law and legal niceities, though I know no one cares about it, power politics rules all, Taiwan is part of China and the status of Tibet is somewhat equivical and China has some right of claim. I notice America had a civil war because the federal government wouldn't allow part of the Union to cede.  Why you constantly think that what is OK for America, isn't OK for anyone else, I don't know.

Don't get me wrong, I don't think China is heaven on earth, its western hypocrisy that I can't stand. The idea that the west is benigh and only invades other countries, murders their citizens and exploits their resources for the benefit of mankind.

< Message edited by meatcleaver -- 8/27/2008 3:20:49 AM >


_____________________________

There are fascists who consider themselves humanitarians, like cannibals on a health kick, eating only vegetarians.

(in reply to Alumbrado)
Profile   Post #: 27
RE: The China Price - 8/27/2008 4:06:37 AM   
SilverMark


Posts: 3457
Joined: 5/9/2007
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lol.....then someone MUST be posting under your name....


"Chinese haven't taught the world anything, they have followed the European model which begat the American model,"....
of course I could be mistaken....
I am no fan of what the Chinese have done in these maters...I was just speaking from experience.


(in reply to Alumbrado)
Profile   Post #: 28
RE: The China Price - 8/27/2008 6:10:44 AM   
OneMoreWaste


Posts: 910
Joined: 8/24/2008
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quote:

ORIGINAL: meatcleaver
The test for China is not the rising cost of labour but whether they have invested their new found wealth wisely. Sooner or later their economy is going to have to change from cheap manufacturing to innovation and creating premium products for the devloped world.


Why? They have a huge population surplus, cheap labor is their playing card. And SOMEBODY needs to actually build the stuff that people buy every day. They don't need to innovate because, to put it bluntly, they've been stealing technologies and ignoring patents for centuries.

quote:

ORIGINAL: SilverMark
Neither the Europeans nor the Japanese have mastered the intricate hand made skills in a mass manufacturing setting at a reasonable price with the efficiencies of the Chinese.


No, but the Indians have, and to a lesser extent, the Pakistanis.

quote:

ORIGINAL: Alumbrado
The fact that the Chinese military considers corporations to be units of the military is old news, even older than the active duty 'technical' divisions securing the oil fields in the Sudan....


Ever since the Industrial Revolution this has been a more or less universal truth, actually, and that's the scary thing. If you look back over the twentieth century and see how vital U.S. industry was to the Allied success in WWII, then look at the state of U.S. manufacturing today... gives me the heebie-jeebies

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Profile   Post #: 29
RE: The China Price - 8/27/2008 6:33:18 AM   
meatcleaver


Posts: 9030
Joined: 3/13/2006
Status: offline
quote:

ORIGINAL: OneMoreWaste

quote:

ORIGINAL: meatcleaver
The test for China is not the rising cost of labour but whether they have invested their new found wealth wisely. Sooner or later their economy is going to have to change from cheap manufacturing to innovation and creating premium products for the devloped world.


Why? They have a huge population surplus, cheap labor is their playing card. And SOMEBODY needs to actually build the stuff that people buy every day. They don't need to innovate because, to put it bluntly, they've been stealing technologies and ignoring patents for centuries.



In the 19th century and the beginning of the 20th, the USA was the biggest copyright offender in the world. It was only when America had products of its own to protect did it start enforcing copyright law.


_____________________________

There are fascists who consider themselves humanitarians, like cannibals on a health kick, eating only vegetarians.

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Profile   Post #: 30
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