Study Finds China Manufacturing Costs Rising to US Level

Discussion in 'General Discussion' started by billmoo, Apr 18, 2013.

  1. billmoo

    billmoo aka zynordar TFW2005 Supporter

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    New Study Finds China Manufacturing Costs Rising to US Level

    Not directly related to Transformers and 3rd party toys (hence in General Discussion) but, if true, could certainly impact them. Do you think Hasbro could potentially pull out of Chinese factories and move manufacturing to another country? Will this eventually more heavily influence their price? We've already seen prices move up and toy sizes change slightly in recent years. Could we see more robots in the future manufactured in Western facilities?
     
  2. Cheetatron

    Cheetatron Drat, outsmarted by a Lorry, I am disgraced

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    Possible
     
  3. Aernaroth

    Aernaroth <b><font color=blue>I voted for Super_Megatron and Veteran

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    They've already announced TakaraTomy will be shifting at least part of production to Vietnam. I think they've already started, actually.

    http://www.takaratomy.co.jp/english/ir/personal/pdf/tomy_group_medium_term_plan_1206.pdf

    If labor prices continue to rise and conditions change to the point there is no savings in terms of labor, electricity, taxation/regulatory adherence, infrastructure and currency exchange issues, etc. then yes, we could see movement of production back to places like the United States, especially as the cost of transporting manufactured goods continues to climb. However, the alternative to that is to keep going places where labor is cheaper and/or raise prices.

    However, as China becomes a bigger and bigger market, those same factors will push to have production remain close to them to minimize those same costs relative to sales.
     
    Last edited: Apr 18, 2013
  4. TFW10

    TFW10 Well-Known Member

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    Its possible it may impact the toy company as well as other companies or products.
     
  5. RKillian

    RKillian http://www.rktoyandhobby.com

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    That's been my experience at least. For small runs, the Chinese want as much as or more than what I would've expected an evil unionized factory in the US to charge. To get a 1:6 scale figure with minimal clothing and no accessories manufactured, I was looking at almost $100 per unit. The difference is that the Chinese will at least tell you that high price while American companies completely ignore you as they cry about not having enough customers.
     
  6. VictoryLeo19

    VictoryLeo19 Well-Known Member

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    China and India are known as "catch up" countries for business and related manufacturing industries. They are rapidly growing but will likely plateau at the same rate levels of the US. The shift to Vietnam will likely begin happening in India as well, to other countries with similar labor rate benefits as Vietnam.

    I would think third party transformers as an entire industry will likely be shut down in the next few years. Enjoy them while you can, I know I will.
     
  7. spikex

    spikex Nightbird is my bitch

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    I normally don't get involved in this kind of discussion but I just can't stop myself:

    Actually the main difference is the the Chinese companies keep profits for the owners while letting the workers live in squalor and the "evil" unionized factories are actually held accountable to paying the workers a fair wage from the profit made off of the product that they built in the first place.

    Think about that next time your enjoying your weekend, or overtime pay, or vacation pay, or benefits. All of which made possible by your friendly neighborhood brothers and sisters.
     
  8. Onslaught24

    Onslaught24 Ayo Fryman. That uh, that's highly illogical. Moderator News Staff

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    I sure as hell hope they move farther West. I want mah robits quicker
     
  9. Karhukjnsi

    Karhukjnsi Universal Wrestler

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    A lot of the TFP figs are being made in Vietnam now.
     
  10. RKillian

    RKillian http://www.rktoyandhobby.com

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    I guess it didn't quite come through that the "evil" was sarcastic. I spend enough time around people that don't understand how hard working people once fought for those benefits that we take for granted today and think that a stack of dollars or bits on an electronic ledger will spontaneously manifest the goods and services that define our economy. I was trying to highlight the sheer idiocy of paying 1st world money to produce a 3rd world product.

    There is no end to my hatred of companies, especially "American" companies that're nothing but middlemen for foreign sweatshops, that think small jobs are beneath them yet have the temerity to cry about not doing as well as they believe they're entitled to and inevitably run to people who actually do work for a bailout.
     
  11. Macross7

    Macross7 Well-Known Member

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    Of course, this rise to US levels will lead to their fall. The only reason they can rise is the US level is we have our stuff made their since it is cheap. If it isn't cheap anymore, we'll find another country to make out stuff. So whatever growth there was will fall back down since the $$ isn't coming in anymore.

    If it does rise to US levels and if they can't find another coutry to make stuff cheap, just bring the manufacturing back to the US. It will save on shipping costs & help the US ecomomy.
     
  12. spikex

    spikex Nightbird is my bitch

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    In that case I'd like to offer my sincere apologies. I find that there is far too much anti-union sentiment growing in North America and for the sake of our future generations it is highly important to raise awareness of the fact that organized labour is responsible for our current standards of living inside and outside of our workplaces.
     
  13. RKillian

    RKillian http://www.rktoyandhobby.com

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    It's more anti-labor than anti-union. They think if the cheap foreign labor spigot ever turns off, they'll just get robots to make everything and reap infinite profits forever. It never dawns on them that they might have trouble finding customers if enough people are put out of work by those robots. What's ridiculous is that we're essentially told that no business model can ever work unless the product or service is practically free. If that's the case, why bother making new toys overseas? Why not just go to schools and nurseries and steal old ones instead? Think of the savings! No more buying materials and energy and no more waiting for assembly and shipping!
     
  14. VictoryLeo19

    VictoryLeo19 Well-Known Member

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    I think the danger-close limit is about reached with turning this into a political discussion.



    And there are plenty of people in the US who would adamantly disagree with you.
     
  15. Mutt12

    Mutt12 Starroid Raider

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    Hmmmm... well, if I ever get my action figure line off the ground, I might just have to find a local factory.
     
  16. spikex

    spikex Nightbird is my bitch

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    Ya I hear you. I knew I was toeing the line but it's something I feel very passionate about. Like I said, I try to steer clear of these types of discussions but i couldnt stop myself. Also, I sadly must agree with your sentiment about the disagreeing.
     
  17. jestermon

    jestermon Well-Known Member

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    Even if the cost does go over the US cost, if they would have to spend more money to build factories in the US and such they may still stay with China, even if they aren't saving money on the actual manufacturing they may be saving on the zoning, construction, and palm greasing in the US.

    And, I'm sorry but even if it meant US self sufficiency no one here is going to want an unsightly factory in there area.

    There would be all kinds of crazies coming out of the woodwork to ban building of these factories.