Breaking News
Comments
Newest First | Oldest First | Threaded View
<<   <   Page 5 / 6   >   >>
ibm221
User Rank
Rookie
re: U.S., European manufacturers join forces to compete with China
ibm221   6/28/2012 12:30:19 AM
NO RATINGS
US food price is acturally lower than china. what americans got to do is 'move back to downtown', just like 1920s americans, living in a flat close to factory, before cars were invented. travel by bus or bike... then this game will be fair again... otherwise your cost model just can't compete.

DMcCunney
User Rank
CEO
re: U.S., European manufacturers join forces to compete with China
DMcCunney   6/28/2012 12:05:21 AM
NO RATINGS
If I were SMT, I'd feel the same. If what my customer wants is something I can profitably manufacture, I do so. If the customer needs larger volumes, I can serve as the contractor overseeing offshore production. The customer is happy because they only have to deal with me.

george.leopold
User Rank
Rookie
re: U.S., European manufacturers join forces to compete with China
george.leopold   6/27/2012 11:42:21 PM
NO RATINGS
Escatec and SMT both understand that high-volume manufacturing will remain in Asia. In this case, Escatec's operation in Penang, Malaysia. As reported, SMT serves as another "gateway" for directing high-volume, low value-added work to Malaysia. SMT views this option as an asset.

Eric Verhulst_Altreonic
User Rank
Rookie
re: U.S., European manufacturers join forces to compete with China
Eric Verhulst_Altreonic   6/27/2012 11:31:43 PM
NO RATINGS
The public sector with its high inefficiency and political decision making and resulting high taxes are the prime reason why the West is no longer competitive. The cost of living is high because everything includes 50 direct and indirect taxes.

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".

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.

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.

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.

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.

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?

<<   <   Page 5 / 6   >   >>


Flash Poll
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Engineer's Bookshelf
Caleb Kraft

The Martian: A Delightful Exploration of Math, Mars & Feces
Caleb Kraft
3 comments
To say that Andy Weir's The Martian is an exploration of math, Mars, and feces is a slight simplification. I doubt that the author would have any complaints, though.

The Engineering Life - Around the Web
Caleb Kraft

Surprise TOQ Teardown at EELive!
Caleb Kraft
Post a comment
This year, for EELive! I had a little surprise that I was quite eager to share. Qualcomm had given us a TOQ smart watch in order to award someone a prize. We were given complete freedom to ...

Design Contests & Competitions
Caleb Kraft

Join The Balancing Act With April's Caption Contest
Caleb Kraft
54 comments
Sometimes it can feel like you're really performing in the big tent when presenting your hardware. This month's caption contest exemplifies this wonderfully.

Engineering Investigations
Caleb Kraft

Frankenstein's Fix: The Winners Announced!
Caleb Kraft
8 comments
The Frankenstein's Fix contest for the Tektronix Scope has finally officially come to an end. We had an incredibly amusing live chat earlier today to announce the winners. However, we ...

Top Comments of the Week
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)