Partners
HOME    BLOGS    BLOGGERS    MESSAGES    VIDEO    AUDIO    REPORTS    RESEARCH    WEBINARS

How US Cities Could Win IT Back From China

Newest First    Oldest First    Threaded View
Page 1 / 2   >   >>
Mary Jander
Mary Jander  
4/29/2013 10:58:51 AM
User Rank Staff
Re: Apple's problems in China
Yes, indeed. Great point, Shane. There is enough blame to go around here -- and certainly not all of it goes to the specific plants. The outsourcers and offshorers too must shoulder some of the burden of responsbility for these tragic events.

Shane Fernandez
Shane Fernandez  
4/29/2013 10:30:22 AM
User Rank Blogger
Re: Apple's problems in China
Hi Mary. Not just China. Have you seen the latest on that factory in Bangladesh? "It was the worst tragedy to hit Bangladesh's massive garment industry, and focused attention on the poor working conditions of the employees who toil for $38 a month to produce clothing for top international brands."

http://www.cbc.ca/news/world/story/2013/04/27/bangladesh-building-collapse.html

Mary Jander
Mary Jander  
4/29/2013 10:03:02 AM
User Rank Staff
Re: Apple's problems in China
I agree, Shane. I know there were many who argued that Foxconn's statistics taken in context showed that the suicide rates at that plant were average or low. I'm not buying it. I think Foxconn's problems awhile back (allowing for some improvements) point to cultural issues in some areas of Chinese manufacturing.

Shane Fernandez
Shane Fernandez  
4/27/2013 3:48:33 PM
User Rank Blogger
Re: Getting the manufacturing back
Agreed Jim.

Jim O'Reilly
Jim O'Reilly  
4/27/2013 10:29:28 AM
User Rank Blogger
Re: Getting the manufacturing back
There's an efficiency factor involved,too, Shane. You've seen the rows of Chinese workers all assembling iPhones by hand. We'd autoamte much of that, with the result that per unit assembly costs are much closer to China's.

Shane Fernandez
Shane Fernandez  
4/27/2013 1:09:31 AM
User Rank Blogger
Re: Apple's problems in China
Hi Mary,


Apple's revenue issue are just one of the many problems they have and are facing. Their partnership with contractor Hon Hai/Foxconn is something I believe has left a bad tase in many people's mouths. Hon Hai/Foxconn is well known and notorious for the way their workers are treated and I am sure you are aware of the numerous suicides that took place on sight. Apple keeping their margins so high with things like that going on is hard to swallow.

Shane Fernandez
Shane Fernandez  
4/27/2013 1:00:47 AM
User Rank Blogger
Re: Getting the manufacturing back
Jim,

I agree totally. A couple more points to reinforce yours:

Global shipping costs are rising steadily. Chinese wages rose by 16 percent annually over the past decade. At that pace, combined with keeping wages reasonable here, we could see the cost of labour in China and North America start to converge.

Mary Jander
Mary Jander  
4/25/2013 12:57:19 PM
User Rank Staff
Apple's problems in China
Interestingly, Apple is having setbacks in China for a range of reasons not related specifically to lower labor rates. I think it's worth noting that offshoring in China does not guarantee market strength in that country.

Jim O'Reilly
Jim O'Reilly  
4/25/2013 11:11:01 AM
User Rank Blogger
Re: Getting the manufacturing back
US assmbly will shorten inventory cycles, freeing up cash and also shorten fulfillment times and add flexibility. As to labor costs, the labor cost per unit has dropped significantly, so moving onshore won't add much to the unit cost.

There are plenty of unemployed in the US to work on this!

Mary Jander
Mary Jander  
4/25/2013 9:22:02 AM
User Rank Staff
Re: Reasonable steps
Indeed, arv, there are advantages to offshoring. In the last while, though, some of those advantages have weakened -- for instance, higher wages in China are bringing up the cost of formerly cheap labor. If security concerns add to the negative mix, there's good reason to reconsider the offshoring strategy.

Further, there is a great need for rejuvenating jobs back home.

Lots to think about here.

Page 1 / 2   >   >>
research
Smart City Money Makers
companies and solutions that are most prominent, and destined to be most profitable, in the smart city revolution.
How to Make Your City Smarter
Cities all over the world need to become smarter and more sustainable. But where to start? Download this guide to learn the first, proven steps toward making your city smarter.
all research
quick poll
Join the discussion
All polls
twitter feed
Future Cities Twitter Feed
follow us on facebook
Site Moderators
Future Cities is looking for engaged readers to moderate the message boards on this site. Engage in high-IQ conversations; earn kudos and perks. Interested? E-mail:
moderators@ubmfuturecities.com
directory
Designed to provide the people with access to green building products all year round
connect to us
Terms of Service
Privacy Policy
Copyright © 2014 UBM,
All rights reserved.