The End of Cheap Chinese Goods-What will it Mean for You?

by fulltimestudent 55 Replies latest social current

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  talesin

  As long as we don't get sucked into the quagmire that is below the 49th parallel, Canada has resources that China wants, especially our wheat.
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  fulltimestudent

  Comments on the quality of some Chinese made stuff are valid. But have you ever stopped to ask, how come this low quality stuff turns up in your marketplace?

  Do the leaders of China sit down in Beijing and decide, "Lets send a ship load of this crap to XXXX (whereever)?"

  Or, does the buyer for a company in the country where you live, go on a buying trip,maybe to different countries (its a global market), sees the stuff he wants, and decides to place an order for those things? That buyer will likely have a reason for the decision he makes. He know his market is likely very price-conscious and willing to trade some quality for a lower price.

  I have had a lot of experience in custom made stuff. Managed a couple of SME factories. One problem in Australia is productivity. As one current owner of factory that makes to order tells me, he has a difficult time keeping his staff at work. (always wanting a day off). I was in another factory last year with a friend (I do some part-time work) The owner was late for our appointment. So while waiting I watched what was going on in the factory - those guys were only pretending to work, probably because the boss wasn't there. Another problem is quality. Some guys just do not care, which turns out to cause long defects lists.

  Incidently, not all Chinese factories are sweat-shops. I accompanied a business friend to a trip to China and we looked at a few factories, and I doubt that the staff were working under pressure.

  OTOH, in a factory I inspected in Taiwan they were really going for it. The production line made upright commercial refrigerators- equvalent of 2 doors, but fitted with 4 half doors. It was extremely well-organised, and each team of two guys were assembling two cabinets a day. I do not think any factory making similar cabinets in Aust. would achieve that output, which is the reason (I guess) why most cabinets like that now come from Asia ( Malaysia, Taiwan, Korea and China).

  I've heard from another ex-jw of a brother in western Sydney who managed the NSW Government Railways Foundry. It was a union shop, and when the workers felt they'd done enough work, they just eased off. The manager (brother) used to warn them of what would happen one day, and his forecast came true. The railways eventually closed the foundry and bought from, guess where? Asia, of course! So, in the end all manufacturing moves and the last lot of trains that were bought for the Sydney rail network, had carcasses that were made in China.

  Another problem in buying from anywhere overseas is failure to set up proper specification schedules and detailed and approved shop drawings. In that case, variation in detail is bound to happen.

  And, another problem is an attempt to force the sell-price lower. Then the factory making the stuff will make their own efforts to cut costs, which probably means subbing the stuff out.
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  botchtowersociety

  Another low cost manufacturer will step into China's place. There are billions of people in other countries.
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  Satanus

  Yup. Not just any country can be used though. For instance russia and africa don't work so well. It takes a certain work ethic and mentality. Basically central and south america are available. Brazil is already being used quite a lot.

  S
• 

  Vidiot

  Fewer Transformers toys for... um... my kids... yeah, my kids...
• 

  ziddina

  "The End of Cheap Chinese Goods-What will it Mean for You?"

  Well, less badly polluted foods - there have been several spates of pet deaths due to dangerous additives coming over from China and used in pet foods - to the point that the "Made In America" pet food companies have gained more customers...

  Plus, with my food allergies, I've noticed that lately there seems to be something in commercially prepared wheat-product-based desserts that has been making me sick - I've switched back to cooking my own desserts, which is healthier for me, anyway.

  As for clothes - I either buy second-hand or make my own.

  What about fabrics? Someone mentioned that 'cheap' goods used to come from Japan; some of the nicest fabrics in the quilt shops are coming over from Japan nowadays. Plus, there are all those fabric factories lying vacant and useless in the South - U.S.A., that is. I'd like to see them go back into business, as their products were often of excellent quality.

  And if we could switch back to getting shoes from Brazil - or better yet, the U.S.A. - that could mean a real improvement in the condition of peoples' feet - no more cheap, poorly-built 4-inch-heels that can snap an ankle in 2 seconds flat or destroy an arch in a month...
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  pbrow

  It will help bring manufacturing jobs back to America! Although we americans will not work them because they will still not be high paying jobs that provide $70,000/year with another $30,000 in benefits.

  zid... we can switch to getting shoes from the USA! The "problem" is that you have to pay for them and the living wage, insurance and pensions that it takes to make them if you want US made products. That is the trade off. I am not saying i am for or against cheap goods or that I am for or against living wages, insurance or pensions. There is a reason we have cheap products in our country and its because WE want them. Its not because Sam Walton wanted us to have them, its because we wanted them and Sam Walton figured out a way to give it to us. Simple economics

  pbrow
• 

  Satanus

  ' The "problem" is that you have to pay for them and the living wage, insurance and pensions that it takes to make them if you want US made products. That is the trade off. ;

  Competition from china and other areas does help to keep down the prices. As well, automation is growing by leaps and bounds. Automated systems can cut down costs tremendously. They can work 24/7, too. Each new factory can opt for the very latest robot tech. While automation cuts down on workers needed, there are still many jobs in connected areas like suppliers and transportion.

  Americans may well be among the most creative people, imo. This is where that attribute can make the difference between success and failure.

  S
• 

  fulltimestudent

  I think you're right Satanus, a resurgence of manufacture in some western nations may not translate into more factory jobs for the reason that anyone investing in a new factory in 2013 will be thinking of robotic fabrication. and since the distribution and transportation network is already in place, there may not be many new jobs there anyway.

  Another thing is that the world has already moved on, personal budgets have adjusted to low cost products, and increased prices will just mean that people will buy less of that product.

  And obviously, if China is moving out of the cheap end of the market, then they are planning (hoping) to move upmarket. My impression is that in those areas, the Chinese may have an excellent chance of succeeding. On my visits to China, I've tried to wander around the back streets as well as the main streets. In those streets, you often see small shops with well-made, good-looking products on display, particularly in women's clothing.

  This shop is obviously more up-market than what I've seen, but it illustrates the trend.

  english.cntv.cn/program/cultureexpress/20121116/101911.shtml

  It took the Japanese near 20 years to move from cheap to quality. Korea about 15 years and my estimate is about the same for China (15 years).

  And, I agree, that the 'low-end' manufacturers are already moving on to other Asian countries. Bangladash and Cambodia among them. And, possibly later they'll head for Africa. The Chinese are investing heavily in infra-structure in Africa, they obviously think that something will change in that continent. And, they are spending a lot on infra-structure in Asia, also. Already there is a second route (to the Trans-Siberia railway) to Europe, through Central Asia and a third route is in planning, links are planned that will mean you can travel from Singapore or Bangkok all the way to London. That no-so-future-world will be much different to yesterday's world.
• 

  NewChapter

  I do my best to think about what I buy. I will pay a bit extra to shop local. I avoid Walmart as much as possible. I get to know business owners, and try to pay cash so they don't have to pay the fee with the card. But it's very difficult to be 'pure' in this respect, because we need to buy what is available, and it is not always clear what comes from where. I've never been a 'thing' person. But I'm sure I have some products that don't fit 100% with my ideology---absolutely. I'm not sure what kind of impact it will make on me. I do my best, so perhaps it won't matter much---OR I will find out that despite my care, I have a lot of cheap stuff from China.

  We'll see.