Monday, July 17, 2006

Is the tide turning on outsourcing and China Molds?

I just got my issue of Injection Molding Magazine in the mail this morning. I thumb through it quickly before sending into the round file nearly every month. In the summer month many of the trade journal and trade groups either don't publish or meet until fall. Many put out out their Buyers guides which are easy for them to publish or combine several issues into one. I'm sure people can find better things to do with their time than read trade journals.
The Injection molding mag was quite thin as to be expected a few things caught my eye this month.
The editor note was The few, the skilled..The fewer. I will be making a post here in the future to give my view on the shortage of skilled labor.
Next was the business forecast, things are looking up. These magazines are typically quite bad at forecasting, every month they're predicting an upturn, and the data by the time it gets to you is fairly old. Looks like the last 5 years have been flat for plastic part production. These magazine are typically supported by equipment manufacturers and if they can convince you the tide is about to turn you may be more inclined to purchase some new equipment.
One of the articles that caught my eye and I did agree with was, Right-shoring designs.The jest is that companies are going off shore because of lower labor costs and it appears to be the "hip" thing to do and they might get a "paid" vacation from it. That many of these products don't have to go countries with the lowest labor rate, they can use technology to eliminate the manual labor and keep jobs here manufacturing the machines. Bravo!! I touched on this in my last post, in this case eliminating jobs low skilled jobs..creates jobs high skilled jobs.
The only other article of worthy mention was the titled "You get what you pay for" an article about how Chinese molds are built with inferior materials and that an affordable alternative might be high grade aluminum molds built here in the US for production. One thing the author should have mentioned is due to the lack of an aircraft industry in China that aluminum molds rare in china. Like most thing I will take a change in the way of thinking about production molds, I agree with many of his premises though.
I was surprised in this issue that they were so many articles slamming Chinese molds and outsourcing. This magazine has been supporting offshoring and is usually highlighting some foreign mold manufacturer or molder in their spotlight section. I suppose you just have to follow the money, All the advertisers in the back of the mag are Asian moldbilders. Maybe the tide is turning after all. Too bad it is hapening during summer and most will never see it.

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