[Logophile]

Your post reminded me of a manufacturing plant that I toured recently in the United States. The firm that owns the plant is the leader in its industry. Several things impressed me about their operation:

1. The plant was scrupulously clean. Not a speck of dust or oil could be seen anywhere. I have been in hospitals that were not so clean. The factory was fairly new, the operation having been moved from the Midwest a few years ago.

2. The process is highly automated. Just a handful of workers were needed to run the entire factory.

3. The specialized equipment in the plant was imported from Europe. Most companies in that particular industry use the same equipment.

4. The quality standards were impressive. The company carefully monitors and controls every step of the process. As a result, their defect rate is an order of magnitude lower than its competitors'. This despite the fact that they use similar equipment and processes.

The company also has a plant in China that is dedicated to serving the Chinese market. No one at the US plant seemed much concerned that products from the Chinese plant might be imported to take business from them. The only advantage the Chinese operation has (other than close proximity to its primary markets) is lower labor costs; however, because so few workers are needed, the wage differential does not matter much.

The lessons for American manufacturers shold be apparent.

[brainstem223]

And what was the product they were making or you prefer to be as vague as was your point>?

[snugs]

Yes the majority of work in our Chinese factory is for the Chinese market.

We do import part manufactured items for final assembly at our works and some smaller finished machines. The main saving as you say is labour costs, raw materials are not a lot different and wages are fast catching up.

Also goods are no longer duty free from China I believe because of the agreement for them to join the WTO we now have to pay duty on all Chinese goods coming into Britain.