China’s Debt Crisis

#China may be forced to continue to increase its debt position. Their cash flow future looks grim. China’s debt is largely held by corporations. The problem is a fair number of their small and large companies are poorly managed. Their inefficient equipment and systems results in high-cost, money-losing operating companies. This results in deficit cash […]

Is China Headed for a Breakup Just Like The Soviet Union’s?

The Wall Street Journal article “The Coming Chinese Crackup” by Dr. David Shambaugh, a leading expert on China, forecasts that China may be heading towards the same political breakup the Soviet Union experienced in 1991 under Mikhail Gorbachev. “China-watchers have been on high alert for telltale signs of regime decay and decline ever since the […]

An Avoidable Manufacturing Failure?

Google announced in May that it has decided to close its Motorola Moto X smartphone plant. The Texas plant has been in operation for one year. Its smartphones will be manufactured in China and Brazil. One goal for this plant was to “…challenge conventional wisdom that manufacturing in the U.S. is too expensive.” But unit […]

Is China Facing a Growth and Debt Crisis?

“Will China Shake the World Again?” is a recent article written by Robert Preston. Preston is the Business Editor for the BBC. The piece discusses China’s ability to sustain its growth, manage its heavy debt positions and avoid a disaster equal to or greater than the 2007-2008 financial crisis. Preston believes China has an “unbalanced […]

Is China’s decline permanent?

News reports are replete with China’s struggles and decline. China’s past success is frequently labeled a “Bubble” with the question – Is it bursting? Yes, China is in decline. But not just due to negative Global economic struggles. China has entrenched problems that are contributing to its decline. Are these problems intractable? Following are significant […]

Mexico vs. China. Which is the Better Plant Location?

The question of whether Mexico is a better place to manufacture a product versus China seems to come up frequently.  A recent Los Angeles Times article combined with my experiences in closing a USA plant and building a new plant in Shanghai are the sources for the following: Since 2000, the 3,700 Mexican Maquiladoras have […]

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 […]

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 […]

Sun Tzu’s “The Art of War”

Sun Tzu’s book “The Art of War”was written in 400BC. Peter Drucker’s and Sun Tzu’s management tenets for success are essentially the same. Sun Tzu was China’s first professional General. Prior to him the Sovereign led his army which was frequently disorganized, under-funded and unsuccessful. He developed strategy and tactics of war but also detailed […]