jobs export

got "promotions" notice from Allied Electronics:
Cherry Switches from Highland Park Illinois since 1953 sold to ZF corp of Germany -automotive- gearbox- motorcycle components (Harley switch gear).
Is that the sucking sound of jobs leaving the USA? At a minimum will the profits go overseas?

In the 1970s, the GATT meetings in South America were about preventing quality issues from becoming barriers to trade. For America and Australia, adding value by improving quality is a way we can compete at the top end of the market and justify our overheads. When an American company imports parts from Germany, the product quality is probably already excellent. So it is game over !

Many German concerns have bought companies here and continue to run them at a profit here or cause them to start making a profit by abandoning the "profit is god" business model, consulting with their workforce to improve efficiency, and making wise investments in their people and equipment. It's amazing how they can do it, but everyone here wants to leave and go to Mexico or China. It's been proven time and time again that most of the problems are at the top.

dynodave said:

Is that the sucking sound of jobs leaving the USA? At a minimum will the profits go overseas?

Click to expand...

Welcome to the world of globalisation !
Something the USA has excelled in for the past few centuries.
Funny now the tables have turned...

And the Chinese complained when the Brits stole their plants, and secret recipe, for making tea,
and set up a rival business in India. circa 1820 or so...
Global mega-business.

Ain't nothing new under the sun ?

In a consumption-based economy, wealth is created by adding value to a product or service. That can be done through increasing the volume of product or by improving product quality. There is an interesting TV show out of the UK called the Antiques Road Show. They sometimes mention that in 1930s Britain, there was an arts and crafts revival. Much of what comes out of China and India is still poor quality product, however it can be used as a basis for improvement. The problem is that any improvement to a Chinese product would probably be taken on board and move the Chinese up-market. Once the Chinese compete at the top end of the market along with the Germans, it is all over for the rest of us.
The strengths of America and Australia lie in our education system and our ability to be creative and innovative. I don't think much of Chinese art and design. One of our main problems is that in Australia and America, many people seem to have no appreciation of the importance of quality when they are buying. 'Fit for purpose' means WHAT when attention to detail is poor ?

acotrel said:

One of our main problems is that in Australia and America, many people seem to have no appreciation of the importance of quality when they are buying.

Click to expand...

Don't dismiss the percentage of those buyers that are on low/fixed/marginal budgets. That is most likely a major factor in consideration when buying; you can't buy something you can't afford.

...and this opinion from someone who is fairly well-versed in life-cycle cost...