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  • Hornby model paint production exits China as costs soar

    Discussion in 'The Leisure Lounge' started by GarethW, Dec 3, 2012.

    1. GarethW

      GarethW Chief Clicker Staff Member

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      Intresting stuff, but it doesn't surprise me. I've noticed myself that that things are really starting to get much more expensive out there.

      http://www.telegraph.co.uk/finance/...nt-production-exits-China-as-costs-soar.html#

       
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    3. kevin136

      kevin136 Well-Known Member

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      As Chinese,I think I can say something about that.
      Indeed,labour cost is increasing here.Inflaction is the main reason,that is also the problem other countrys are facing.
      Nowadays,some internetional companys such as NIKE prefer to place order to factory in South-east Asia. Those comanys have a characteristic need many labours.
      But I don't China will lost her market.Considering the huge population,completed industry system,most important is the potential market.
      Environment pollution and aging are two big challenges for Chinese government.
       
    4. epochdesign

      epochdesign Member

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      I have noticed an undue inflation of costs from certain vendors in China. Sometimes there are too many people with their hands in the pot. Others just don't know how to competetively price themselves. Still others just assume you're not paying attention to the going rate locally. On a single project, I've received quotes that were half the cost, the same cost and nearly 50% more than what I could get the same work done for down the street. When I ask why the price is so high, they always answer me, "oh, we have to outsource that." So you would be paying them the original cost (which might not have been so bad) in addition to 100% or more markup, and then shipping and tarrifs. By the time you're done, you will wished you had sourced locally. I also think that some of the manufacturers are just getting greedy, as they have here in the USA in the past. They want only the big jobs, the high-volume jobs, the easy money. They just start quoting outrageous prices; most people won't buy it, but some will. It might be working for now. As a designer and product developer, one of the reasons I started going to China was I would actually get service, and very good service, when I couldn't get a US mfr to even talk to me. I've already noticed manufacturers in the US becoming more responsive to smaller projects and quantities than they were say 5-10 years ago. If the trend continues, whatever the actual cause, people will catch on and the Chinese may loose market share back to the country the project originated in, or somewhere else.
       

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