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Global Commerce
Fred W B - 31/8/06 at 02:31 PM

I have just finished a quote on a piece of equipment. I was held up a little,

once a man in England got back from lunch, he could quote me on some parts.

This enabled me, in South Africa, to complete my estimate of what the equipment would cost to manufacture, and quote my customer.

My customer, In Holland, can now do some sums and quote a lease rate to his agent.

This agent, in America, can then tender on the transportation of a commodity,

which is manufactured in Asia,

and needs to be moved to Europe.

Don't you love global commerce!

Cheers

Fred W B

StevieB - 31/8/06 at 02:56 PM

Yet if you wanted to move something across the same town in UK, involving fewer people and the same country, you could guarantee it'd be late or lost in the process!

nick205 - 31/8/06 at 03:06 PM

Global commerce indeed, but what happens when the Asian manufacturer starts dealing direct with the end user and the English, Dutch, American's and SA's are all out of a job We can't go back to making stuff as none of us know how to any more

Simon - 31/8/06 at 07:25 PM

quote:
Originally posted by nick205
Global commerce indeed, but what happens when the Asian manufacturer starts dealing direct with the end user and the English, Dutch, American's and SA's are all out of a job We can't go back to making stuff as none of us know how to any more


Which is why, time and time again, I suggest people stop buying goods from countries with unfair advantages - such as low wages, lack of emplyee rights, no pension funds, union protection and no human rights.

China now has all the tooling/trademarks and patents to MG Rover technology. They may well be appearing here agaon soon at (one suspects) quite a lot cheaper than they were. They'll also be selling to China and far-east. Note the size of the their market!!!. It doesn't take much to realise that within 4 or 5 years, Nanjing couldbe the biggest producer of cars in the world. Then, they may make an offer for Renault, Ford etc. Then the really tech stuff, maybe something small, like EADS or Airbus.

End of western manufacturing. Then the far east gets rights, unions etc etc, there costs go up, then we can't make anything due to a lack of skill, and can buy anything cos we haven't got any money. Unless you work for civil service, or in a call centre!!!!!!!

ATB

Simon

Fred W B - 1/9/06 at 02:25 PM

Maybe I should write a book.......

I say that as my industry has gone through that cycle in a very short time. 20 years ago, the item we produce was only made in Europe. Since then, SA became the world manufacturing hub for this industry, but in the last few years plants have opened in China, and now we are having to compete with them. So far so good, as we still retain sufficient market share to keep our factory going full speed. We are the only SA plant left, of what was as many as 5 at one stage.

And it's not only on labour costs - in the case of our product labour makes up only about 20 percent of our selling price. World prices of raw materials is the major factor that affects our selling prices.

Cheers

Fred W B

Simon - 1/9/06 at 09:51 PM

quote:
Originally posted by Fred W B

World prices of raw materials is the major factor that affects our selling prices.

Cheers

Fred W B


Talking of raw materials going up (as a result of a glut in China and pension fund managers being clever!!!), have a look at this!!

This is for copper (we use bronze which is about 80% copper)!!

ATB

Simon

[Edited on 1/9/06 by Simon]

Simon - 1/9/06 at 09:51 PM

quote:
Originally posted by Fred W B

World prices of raw materials is the major factor that affects our selling prices.

Cheers

Fred W B


Talking of raw materials going up (as a result of a glut in China and pension fund managers being clever!!!), have a look at this!!