I always find it very interesting the passions stirred up where China
is concerned. Do read this other story at the high end of technology
and engineering competition.
The ultimate global battle
Boeing Versus Airbus by John Newhouse
The jumbo jet is the icon of globalization; the competition between
Boeing and Airbus is the iconic rivalry. A major theme of this
excellent business book is how the US company has had to rethink and
reshape its business practices to match more closely those of Airbus.
On a larger scale, it is not unlike what the US will have to do to
compete with another upstart, China. - Benjamin A Shobert (Aug 24,
Quote: Second, by outsourcing large portions of the 787, Boeing sent
a strong message to its workforce about what the company was prepared
to do in case it had labor problems on its hands again.
Newhouse expands on this second point when he writes, "There is no
evidence, however, that Boeing is saving much money by outsourcing the
787's wing or sections of the fuselage. Japan is not a cheap labor
market. To the contrary. Neither is Italy. But the outsourcing does
send a message to the unions that Boeing deals with. It says: 'If you
mess too hard with us, we can always outsource your job to another
place'" (p 169).
Newhouse may have written it, but it doesn't necessarily mean his
interpretation is correct. Mostly these global deals for manufacturing
have been negotiated arrangements w/ the associated countries made as
part of market access deals.
If the posts in this thread is any indication much of your (America's)
problems is the inability to recognize that the only way to compete is
to do it better and cheaper. That is unless you have a monopoly
product like large passenger aircraft. Even then the comfort zone
didn't last too long as the Airbus vs Boeing story showed.
I would have thought by now people would have realized that patriotism
doesn't count for much when one pulls out a wallet to pay for a
purchase. Demonizing a competitor is even less effective.
Now I don't have a formula for how to become better and cheaper else I
would have practiced it myself pronto. Its when I see the same tired
old denials as appears in this thread and elsewhere I take some
comfort in that America and the EU doesn't have a plan of any
description to stop the China juggernaut.
The strategic goal of China is to improve the lives of its peoples.
At present there are at least 600 millions who have less than a dollar
a day. That is already twice the population of the US. It will take
at least 20 years if not more to lift these people out of poverty.
That is a massive task for a very modest gain. So don't expect China
to change its present course - low wages, slave work conditions,
cutting corners, etc. - on a dime because you demand that China
adopt the same factory floor conditions you have in the West. Work
conditions will improve of course, but based on realities on the
ground. If you insist on western standards now that can be easily
accommodated by setting up special sanitized zones to manufacture only
for your market. You wouldn't like the price penalties.
Its close enough to Christmas to watch how the present campaign
against Made in China will play out. My bet is that it will be like
any fad of the season and die a quiet death. On the other hand you
have a presidential election campaign season coming up. Bashing China
is a pretty safe headline getter. Well we'll have to let the monthly
trade volume and financial figures tell the real story.
...<snip mindless extolling of Chinese...>...
The competitive stance of Boeing vis a vis Airbus is back in favor of
Boeing at present based on sales. The aforementioned arrangements w/
various places (including China) for the parceling out of work for
Boeing products are readily available. IIRC, a similar arrangement was
reached not long ago w/ the Chinese as well...
Both Airbus and Boeing part out manufacturing jobs like this in order to
garner sales of the final product to that company. Simple economics,
airplanes cost mucho millions and each one they sell more than makes up for
the absurd outsourcing model they employ.
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