4 ms·

The Myth of China’s Manufacturing Prowess

38 points by cwan 17y ago

aresant 17y ago
This blog post, recently on HN, does a great job showing the Chinese approach to manufacturing including videos of some of the high-skill workers: http://www.bunniestudios.com/blog/?p=185 http://www.bunniestudios.com/blog/?p=185
fnid2 17y ago
The difference between the US and China is automation. Same is true of India. I've sent designs overseas that can be made by hand cheaper than they can be made in the U.S. with machines. In this respect, off shoring manufacturing enables a greater range of innovation at much lower risk. I can build 1000 widgets overseas for $1 each, but I can't even get 1000 widgets in the u.s. due to the cost of the machines to make them. The reason the US is still the powerhouse of manufacturing is because they manufacture simple and common devices like screws, springs, etc with machines. These devices have been used for decades and a market has been established for them. The devices, many of them anyway, made in china are on the edge of innovation, whereas the items from the U.S. are older commodity items used in many devices, that is, components of complex devices, rather than the complex device itself.
- rjurney 17y ago
  Do you have links on this stuff? I get what you're saying, and want a deeper understanding of the types of manufacturing/costs of prototyping in the US/elsewhere?
  - fnid2 17y ago
    No links, just personal experience from some small run textile products. I found several factories in India and Bangladesh who all sent me free samples. I called many US factories who make similar products and I got nowhere with any of them. Wouldn't return calls. Wouldn't follow up. Couldn't give me estimates for costs and none would make a sample. It seemed like they thought I was wasting their time. However, overseas, they were all eager and willing to do the work. The factory I went with sent us several examples and worked with us diligently to modify the design to meet our needs/desires. We are getting our first order shipped this month! :)
    - rjurney 17y ago
      What did you use to source manufacturers, MFG.com or something?
- iskander 17y ago
  >In this respect, off shoring manufacturing enables a greater range of innovation at much lower risk. I can build 1000 widgets overseas for $1 each, but I can't even get 1000 widgets in the u.s. due to the cost of the machines to make them. >The reason the US is still the powerhouse of manufacturing is because they manufacture simple and common devices like screws, springs, etc with machines. Your claims strongly contradict my experience. I worked for a manufacturing school in Chicago and learned a bit about the machining/manufacturing market. In the Chicago area alone there are thousands of computerized manufacturing shops on all scales. The smaller shops are often a dozen Polish guys, some CAD software and a few CNC machines. They will happily make your 1000 widgets. These shops survive specifically because Chinese manufacturing only deals with massive volume and is not nearly as reliable. They don't make "simple and common devices" but rather complicated parts for cars, airplanes, consumer devices, pieces of larger scale manufacturing equipment, etc... edit: I see from your other post that you work with textiles-- that's probably a very different market than the precision parts manufacturing I'm familiar with.
  - lfgmikujhygfv 17y ago
    >I see from your other post that you work with textiles There is a Spanish high st fashion chain that specialize in very lean manufacturing, if an item becomes unpopular they don't sell it the next week. An new item takes a couple of weeks from design to the stores. Rather than the annual cycle in most textiles They manufacture in europe, but make money from never making an item that doesn't sell.
    - blrgeek 17y ago
      http://hbswk.hbs.edu/archive/4652.html http://hbswk.hbs.edu/archive/4652.html Zara supply chain ---> mass-manufacturing * lead-time Vs lean manufacturing * cost Applies to almost all industries. Difference is if you want a million of the same thing, or thousand of a thousand things.
- lfgmikujhygfv 17y ago
  That's just part of engineering. If you intend to manufacture in Eu/US you have snap together parts - much more expensive mould tools but quicker assembly. If you are manufacturing in china you use screws, cheaper tooling but more man hours to assemble. There is a whole industry of cost reduction engineering to optimize for this.
bokonist 17y ago
She is comparing the manufacturing output of the U.S. and China in dollars, not actual quantity of stuff. But China is engaging in a policy of actively devaluing the yuan relative to the dollar precisely in order to prop up manufacturing and exports. Thus the quantity of China's output may actually be considerably greater than America's, but the price of the output may be lower due to China's weak currency policy.
- sliverstorm 17y ago
  The author's first name is "Helen". I think "He" is a little inaccurate ;) Sorry to nit-pick
- Perceval 17y ago
  True, but on the flip side, demand for China's goods might be significantly lower if they weren't manipulating their currency. If their goods had a higher valuation from being priced in a more valuable yuan, the demand would probably fall. I guess we have to wonder whether it's politically more important for China to sell high volume/low price or eventually more to medium volume/medium price.
- fnid2 17y ago
  That's definitely true. I wonder what will happen when China releases the Yuan and they are able to compete on a wealth scale with the U.S. Inflation is going to increase dramatically for U.S. consumers and many of the products we use today will become out of reach for even the middle class. We'll be riding bikes and they'll be driving cars.

38 points by cwan 17y ago

This blog post, recently on HN, does a great job showing the Chinese approach to manufacturing including videos of some of the high-skill workers: http://www.bunniestudios.com/blog/?p=185 http://www.bunniestudios.com/blog/?p=185

fnid2 17y ago

The difference between the US and China is automation. Same is true of India. I've sent designs overseas that can be made by hand cheaper than they can be made in the U.S. with machines. In this respect, off shoring manufacturing enables a greater range of innovation at much lower risk. I can build 1000 widgets overseas for $1 each, but I can't even get 1000 widgets in the u.s. due to the cost of the machines to make them. The reason the US is still the powerhouse of manufacturing is because they manufacture simple and common devices like screws, springs, etc with machines. These devices have been used for decades and a market has been established for them. The devices, many of them anyway, made in china are on the edge of innovation, whereas the items from the U.S. are older commodity items used in many devices, that is, components of complex devices, rather than the complex device itself.

rjurney 17y ago
Do you have links on this stuff? I get what you're saying, and want a deeper understanding of the types of manufacturing/costs of prototyping in the US/elsewhere?
- fnid2 17y ago
  No links, just personal experience from some small run textile products. I found several factories in India and Bangladesh who all sent me free samples. I called many US factories who make similar products and I got nowhere with any of them. Wouldn't return calls. Wouldn't follow up. Couldn't give me estimates for costs and none would make a sample. It seemed like they thought I was wasting their time. However, overseas, they were all eager and willing to do the work. The factory I went with sent us several examples and worked with us diligently to modify the design to meet our needs/desires. We are getting our first order shipped this month! :)
  - rjurney 17y ago
    What did you use to source manufacturers, MFG.com or something?
iskander 17y ago
>In this respect, off shoring manufacturing enables a greater range of innovation at much lower risk. I can build 1000 widgets overseas for $1 each, but I can't even get 1000 widgets in the u.s. due to the cost of the machines to make them. >The reason the US is still the powerhouse of manufacturing is because they manufacture simple and common devices like screws, springs, etc with machines. Your claims strongly contradict my experience. I worked for a manufacturing school in Chicago and learned a bit about the machining/manufacturing market. In the Chicago area alone there are thousands of computerized manufacturing shops on all scales. The smaller shops are often a dozen Polish guys, some CAD software and a few CNC machines. They will happily make your 1000 widgets. These shops survive specifically because Chinese manufacturing only deals with massive volume and is not nearly as reliable. They don't make "simple and common devices" but rather complicated parts for cars, airplanes, consumer devices, pieces of larger scale manufacturing equipment, etc... edit: I see from your other post that you work with textiles-- that's probably a very different market than the precision parts manufacturing I'm familiar with.
- lfgmikujhygfv 17y ago
  >I see from your other post that you work with textiles There is a Spanish high st fashion chain that specialize in very lean manufacturing, if an item becomes unpopular they don't sell it the next week. An new item takes a couple of weeks from design to the stores. Rather than the annual cycle in most textiles They manufacture in europe, but make money from never making an item that doesn't sell.
  - blrgeek 17y ago
    http://hbswk.hbs.edu/archive/4652.html http://hbswk.hbs.edu/archive/4652.html Zara supply chain ---> mass-manufacturing * lead-time Vs lean manufacturing * cost Applies to almost all industries. Difference is if you want a million of the same thing, or thousand of a thousand things.
lfgmikujhygfv 17y ago
That's just part of engineering. If you intend to manufacture in Eu/US you have snap together parts - much more expensive mould tools but quicker assembly. If you are manufacturing in china you use screws, cheaper tooling but more man hours to assemble. There is a whole industry of cost reduction engineering to optimize for this.

bokonist 17y ago

She is comparing the manufacturing output of the U.S. and China in dollars, not actual quantity of stuff. But China is engaging in a policy of actively devaluing the yuan relative to the dollar precisely in order to prop up manufacturing and exports. Thus the quantity of China's output may actually be considerably greater than America's, but the price of the output may be lower due to China's weak currency policy.

sliverstorm 17y ago
The author's first name is "Helen". I think "He" is a little inaccurate ;) Sorry to nit-pick
Perceval 17y ago
True, but on the flip side, demand for China's goods might be significantly lower if they weren't manipulating their currency. If their goods had a higher valuation from being priced in a more valuable yuan, the demand would probably fall. I guess we have to wonder whether it's politically more important for China to sell high volume/low price or eventually more to medium volume/medium price.
fnid2 17y ago
That's definitely true. I wonder what will happen when China releases the Yuan and they are able to compete on a wealth scale with the U.S. Inflation is going to increase dramatically for U.S. consumers and many of the products we use today will become out of reach for even the middle class. We'll be riding bikes and they'll be driving cars.