Jul 31 2012
HERE’S WHAT YOU SHOULD DO ABOUT IT I’m often asked by foreign factory managers in China how I would handle the various difficult situations that might arise; fake resumes (fire the perpetrator), violence among the workers (fire anyone who throws a punch), sexual harassment (fire the guy who…), etc. But the one questions I get …
May 19 2012
I hate to say “I told you so”, but… Time was, when everyone was talking a manufacturing exodus from China. I felt like the lone voice saying “not so fast!” I cited a number of strategies which offset rising labor and other manufacturing costs mainly by adding value, as opposed to chasing cheaper labor. Now …
May 18 2012
Just who are these manufacturers who keep moving inland to chase cheap labor? Global Sources Security Products answers this question in their May 11 article , at least with regards to LED and security devices. First, a look at who isn’t moving away from the PRD and why? Despite the promise of lower production costs, …
May 17 2012
Lots of experts are still talking about how manufacturers in China, faced with rising labor and other manufacturing costs, might preserve their competitiveness and profitability. Here’s rundown on the strategies championed (mostly by those who manufacture nothing… but that’s another story). GO STATESIDE: Everyone chased cheap labor to China. Now that it’s not so cheap …
Apr 28 2012
The predictions of a re-shoring trend may be greatly overblown. I commented on this post over on Forbes: “Why Mass Employment in Manufacturing Isn’t Coming Back: It’s The Productivity“. While it’s true that increased labor rates and perceived supply chain risks in China and other “low-cost countries” may prompt some manufacturers to “re-shore” production back …
Apr 24 2012
Went to HSBC’s main office in Hong Kong the other day and was surprised to see an Occupy Hong Kong site in the ground floor.
Apr 03 2012
For manufacturers in China, the most effective hedge against rising costs is attracting, developing and retaining talent. In this case, the most effective is also the most ethically correct. This from the Huffington Post: As I’ve been saying (over and over again), an incremental upsurge in labor rates is not cause for China manufacturers to flee the …
Mar 31 2012
Foxconn/Apple have responded to bad press by vowing to implement changes that benefit workers. That will necessarily mean it will reduce it’s operators’ overtime working hours and, presumable, it will have to boost regular-time salaries to offset the operators’ loss of revenue. The result, of course, higher unit labor costs for Foxconn, and maybe …
Mar 26 2012
I like pictures showing manufacturing processes. Here’s one (in the public domain) I snagged recently. It was drawn and published in 1869 and depicts a Chinese cigar factory in San Francisco. Layout is not bad. Leaning toward cellular assembly. Not a lot of WIP. I like it.
Mar 25 2012
A group of obviously committed students and alumni from Rensselaer Polytechnic Institute run Rensselaer in China | Greater China Business Club. Their interview with me can be read here.
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