Category Archive: Southern China

Jan 27 2013

NYTimes: Mexico: The New China

One of the few well-reasoned articles about manufacturing leaving China. NYTimes: Mexico: The New China http://nyti.ms/Wo0qiu

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Sep 02 2012

Gordon Chang gets it wrong again (updated post)

UPDATED: Gordon Chang’s latest Forbes article reads a bit like pornography for those frustrated China-watchers who are excited by bad China news, and who get off fantasizing about a China crash & burn.  As with most China-fail enthusiasts, he downplays the financial and political resources available to the central government which might mitigate downturns in the economy. (A link to …

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Jul 31 2012

Your Purchasing Manager is corrupt.

greece-bribes

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 …

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May 19 2012

China manufacturing ain’t going nowhere.

Made_in_China_Sticker-20111001

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 …

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May 18 2012

PRD manufacturing: who’s moving inland?

johnny_automatic_cart_carrying_a_crate

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, …

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May 17 2012

Service-rich manufacturing: China’s new killer app?

The Diego Rivera mural in Detroit. It depicts the Ford factory he visited, and also depicts Edsel Ford himself (in the bottom right corner).

  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 …

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Apr 28 2012

Made in America: the reports of its resurrection are greatly exaggerated

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 …

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Apr 24 2012

Tenacious but irrelevant

20120424-021446-AM.jpg

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.

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Apr 03 2012

Ethical, profitable & competitive China manufacturing: focus on labor value, not labor costs

speedup the line

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 …

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Mar 31 2012

Foxconn workers will get more money for fewer hours. What about better hours?

foxconn optical

  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 …

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