Design Con 2015
Breaking News
News & Analysis

U.S., European manufacturers join forces to compete with China

6/27/2012 03:44 PM EDT
56 comments
NO RATINGS
Page 1 / 2 Next >
More Related Links
View Comments: Oldest First | Newest First | Threaded View
Page 1 / 6   >   >>
george.leopold
User Rank
Rookie
re: U.S., European manufacturers join forces to compete with China
george.leopold   6/27/2012 4:48:40 PM
NO RATINGS
This is a modest example of new tactics being employed by European and U.S. tech manufacturers seeking to compete with China and maybe even return some production back to the U.S.

PCIe_Evangelist
User Rank
Manager
re: U.S., European manufacturers join forces to compete with China
PCIe_Evangelist   6/27/2012 5:56:59 PM
NO RATINGS
Go Wisconsin, it's not often a dateline from Appleton appears in this publication. Nice jobs supplement to a lagging print (paper) industry.

george.leopold
User Rank
Rookie
re: U.S., European manufacturers join forces to compete with China
george.leopold   6/27/2012 6:12:17 PM
NO RATINGS
Full disclosure: I am a native of Appleton, Wisconsin. My father worked for Kimberly-Clark for years.

Duane Benson
User Rank
Blogger
re: U.S., European manufacturers join forces to compete with China
Duane Benson   6/27/2012 8:39:02 PM
NO RATINGS
I think that a real key to competing with Chinese manufacturers is to take a look at what they can't easily do that customers still need. The logistics of over seas shipping can be mostly overcome with money, but not always. When an engineer is on such a tight schedule that they want to drop a kit off one morning and pick up a finished prototype the next morning, expensive air shipping isn't going to cut it. Some government contracts fall under ITAR (International Trafficking in Arms Regulations) and more or less has to be built in the U.S. I doubt that we'll ever see high volume consumer manufacturing back in this country, but there are still growth areas for American manufacturing.

george.leopold
User Rank
Rookie
re: U.S., European manufacturers join forces to compete with China
george.leopold   6/27/2012 9:02:34 PM
NO RATINGS
Agree, Duane. Surface Mount Technology is ITAR certified and has military customers. Since they are "designing the labor out" of manufacturing products, they won't create a lot of new manufacturing jobs. But any products that can be made here rather than in China is a plus for the U.S. economy, right?

DMcCunney
User Rank
CEO
re: U.S., European manufacturers join forces to compete with China
DMcCunney   6/27/2012 9:26:48 PM
NO RATINGS
I see this as the converse of TI's move to do more product origination *in* China for products intended for the Chinese market. Time to market is critical, and the closer you are to your customer, the greater the advantage you have. Add that doing everything in China by Chinese vastly reduces the misunderstandings inherent in cross-cultural communications, and eases the problems of doing business there at all. The Chinese government will be far happier to see and approve you if you plan to do *everything* there, since "grow the economy" may be their number 1 priority. Time to market is critical here, too, and the closer to the customer you are, the better you have it. The cost advantages of doing manufacturing overseas come when you have huge volume commodity products where competition is on price and the low cost producer wins. The costs become low enough that it's cheaper to do it there and ship here. When volumes are smaller and the products are higher in the value chain, domestic manufacture becomes feasible, and you get the possibility of a customer being able to send an electronic ECO and see the change put into production the same day. (Not to mention the fact that you are communicating in the same language, and may even be in the same time zone.) You can also get what you make to your customers a lot faster. We aren't likely to see high volume consumer manufacturing in this country again unless it is almost entirely robotic. The trick is finding things to manufacture that can command a high enough price and carry a high enough margin to pay for the manual labor needed to make them.

pixies
User Rank
Rookie
re: U.S., European manufacturers join forces to compete with China
pixies   6/27/2012 9:41:25 PM
NO RATINGS
Agree, if the west really want to compete with China Co. in manufacturing, the process has to be fully automated. It may bring the production lines back, but will not create jobs.

Chee Choy
User Rank
Rookie
re: U.S., European manufacturers join forces to compete with China
Chee Choy   6/27/2012 10:29:13 PM
NO RATINGS
Lowering the cost of living in US to the extend that the cost of made in China products become uncompetitive is the only way.

DMcCunney
User Rank
CEO
re: U.S., European manufacturers join forces to compete with China
DMcCunney   6/27/2012 11:28:38 PM
NO RATINGS
The Chinese are heading in that direction now. The main source of cheap manual labor has been peasants on the farms, for whom factory jobs are a step up, with better hours and working conditions, and much better pay. China is confronting the problems associated with rapid urban growth because of the migration from rural areas to get those jobs. But that pool appears to be beginning to dry up, and Chinese manufacturers must increasingly compete for workers, with corresponding rising wage scale and higher costs. There was a note here a while back about a big Chinese manufacturer that announced a full scale move to robotics in consequence. The problem with going all robotic is enormous up front costs. It might be hard to get a US manufacturer to make the investment unless they saw a really good opportunity in it, and I doubt they would see such opportunities in low margin commodity products.

DMcCunney
User Rank
CEO
re: U.S., European manufacturers join forces to compete with China
DMcCunney   6/27/2012 11:30:00 PM
NO RATINGS
Agreed, but how do you do that? The only way I see that happening is a total economic collapse, and that would be a "cure worse than the disease".

Page 1 / 6   >   >>
Flash Poll
Like Us on Facebook

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Times on Twitter
EE Times Twitter Feed
Top Comments of the Week