Outsourcing from China – Avoiding this Horror Story
A recent article in Manufacturing News described the outsourcing horror story that has engulfed Fellowes Inc. The large paper shredder manufacturer has suffered a significant loss in China. A Chinese joint venture partner stole Fellowes Inc.’s proprietary assets and forced the operation into bankruptcy. The estimated cost is valued at a $100 million. Now the […]
General Motors – Industry Leader?
Regardless of various company officials and politicians assurances that General Motors Company’s rescue is a success, several facts cast a cloud over its viability: ● Its products are not cost competitive. Hourly union labor costs are too high at approximately $58 per hour. Its USA based Asian competitors have lower labor costs. Two are at […]
Can Manufacturing Return to the USA?
The need to move USA manufacturing operations to competitive economic climates, has been essential for a Company’s survival. This exodus to a number of foreign countries, mainly to China and Mexico, has had a negative impact on the USA – its economy, median incomes, standards of living. Today, New Balance Inc. is a rather unique […]
China to surpass USA as World Leader in manufacturing?
The headline in a June 2010 Financial Times article was bothersome. It chronicled “US Manufacturing Crown Slips”. In summary, the article reported: “The US remained the world’s biggest manufacturing nation by output last year, but is poised to relinquish this slot in 2011 to China – thus ending a 110-year run as the number one country […]
Where is China Heading?
Mark Leonard’s book “What Does China Think?” presents China’s challenges and struggles with some surprising priorities its leaders have set to correct them. For the first time in China’s history its 11th five-year plan does not list economic growth as its first priority. The plan: “put people first”…“respecting the natural environment”…introduces a Scandinavian model of social welfare […]
Why William Clay Ford, Jr. Failed
In October 2006, the Ford Motor Company replaced William Clay Ford, Jr. as its Chief Executive Officer. Why did Mr. Ford fail? His own words, reported by Micheline Maynard of the New York Times on July 16, 2006, titled “Is Ford Running On Empty” revealed the answer. “I bowed to managers on what I knew […]
India – What hinders its development?
Some thoughts on the interesting book “In Spite of the Gods – The Strange Rise of Modern India” by Edward Luce, the former Financial Times’ Washington Bureau Chief. He was the FTs’ South Asia Bureau Chief based in New Delhi. While his conclusion is that India will become an economic super power, its many negatives will […]
Mitt Romney Advises: “Let Detroit Go Bankrupt”
Governor Mitt Romney offers some interesting advice regarding the Big Three in his November 18, 2008 New York Times Op-Ed “Let Detroit Go Bankrupt” summarized as follows: “If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but […]
China’s Achilles’ heel – Obstacles to Low Cost
Several issues negative to China as a solid, long-term base for low-cost manufacturing are becoming apparent: Efficiency & Productivity: A company I’m working on is in the process of acquiring a China based digital electronics manufacturing company. In the search for an acquisition candidate, I visited twenty-four manufacturing companies. A large number of them were […]
Managing & The Firestone Debacle vs. “Best Companies to Work For” Analysis
The Wall Street Journal’s January 10, 2002 article “Hidden Cost of Labor Strife” describes how incorrectly reducing labor costs results in higher operating costs. A Fortune magazine article cites examples of correctly reducing costs in difficult times and have employees support your decisions, be sympathetic and helpful. At Emerson Electric Co., we never had employees be […]
Recent Comments