Monday, July 17, 2006

China Mold SPAM, The real cost of foreign molds

Today I open my email to find several emails from Chinese mold shop trying to let them quote work from me. It's a daily chore deleting all theses mails. They seem to know how to get past my spam blockers easy enough. I recently checked my web log to find that about half the hits on my website are from China. One thing I noticed was that it's always a female sending me this mail. I assumed this was just a ploy and was probably a male pretending to be a female to entice US businessmen. A colleague of mine assured me that these were actually females sending me this stuff. They are cheap to employ and the emails were basically free to send. He also commented that it's probably working for them or else they wouldn't continue.
When I started my business about ten years ago I sent out a few emails to announce my new company. I received some replys back stating they would never give me any work and to stop sending them this spam. You know they never have sent me any work. I think I was penalized for this and learned my lesson. I never again was going to send unsolicited emails to prospective customers. It's bad enough that most of the mold work is going to china. I've made good money fixing that junk. I just wish that my customers would learn the real cost of Chinese Molds. I think if they added up all the costs their probably not saving as much as they think. The bean counters only see the quote in front of them. Not the transportation cost, the cost of trips to china or foreign agents to baby sit their products, the communication costs, the quality and rework issues, the intellectual property that is stolen from them. I suppose the fact that they are supporting the Chinese military doesn't bother them, nor the hundreds of thousands of jobs it's cost the manufacturing industry.
I think I can compete with just about anyone in this trade. If there's one good thing can be said is, it's forced my company to invest in new technology and become much leaner. We do the same amount of work we did 5 years ago but employ about a quarter of the workers.
I just wish the playing field was a little more level. Currency manipulation and government subsidies are just not playing by the rules.
I recently read an article in Forbes magazine about the MYFIP worm that was raiding computers from US corporations looking for CAD files to steal companies intellectual property. They weren't even disguising the fact that the information was going back to China. In an earlier post I wrote about how the Chinese and Korean governments are raiding the US patent office for patents to claim as their own.
I'm hoping someday that Corporate America will wise up, but I have little faith in them anymore. When I try to show them that the real cost of getting their product manufactured overseas and how we are competitive. They always tell me their hands are tied and they have been told to source work overseas. I've been told many times that if I don't have overseas manufacturing not to bother quoting a particular job. I know we can compete if given the chance but the chances are becoming fewer and fewer.
Low cost labor is a great enticements to these corporations but more and more labor costs are being driven out of manufacturing due to increased technologies. The American way has always been to work smarter not harder.
A friend of mine makes processing equipment. He's doing quite well selling to the Chinese. His equipment is quite automated and he sell to US companies also. When he produces a machine for the foreign markets he is told by his customer to strip off all the automation they can. They would rather employ their people than benefit from the advances in technologies. I'm sure if he could run the machine but hooking it up to a giant treadmill where a hundred people could run on it they would buy it.

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