Re: [CR]OT: Asian production of modern famous makes....

(Example: Framebuilders:Brian Baylis)

From: <GPVB1@cs.com>
Date: Sun, 9 Feb 2003 17:13:58 EST
Subject: Re: [CR]OT: Asian production of modern famous makes....
To: classicrendezvous@bikelist.org


In many Industries today (consumer electronics comes to mind, but this holds true in many, many areas) there is a known chronology of events for American and European Manufacturers that occurs over and over every year:

1) You Invent, Design, Engineer, Manufacture, and sell in America / Europe.

2) Then, when times get tough, to save money, you outsource the Manufacturing to the Far East (or Hungary, or wherever you choose, based on lowest cost). Layoffs occur.

3) Then, when profits decline further, you outsource the Design to another location. More layoffs occur.

4) When profits still decline, you outsource the Engineering too, keeping a skeleton crew in place here in the US to "oversee" the outsourced work. Still more layoffs.

5) When you still make less money after that, you just go to a catalog, and buy a turnkey product that's "like" your previous one, from the Far East, and Market it to your declining customer base. Even more layoffs (and often bonuses for Execs. based on "costcutting" prowess).

6) You go out of business (think about what Schwinn did over time with Giant, prior to bankruptcy #1).

Am I saying you should bury your head in teh sand and ignore Global forces? No way...

Food for thought.....

Greg Parker Ann Arbor, MI USA


> Date: Sun, 9 Feb 2003 14:05:53 -0500
> From: Richard M Sachs <richardsachs@juno.com>
> To: TheMaaslands@comcast.net
> Cc: Classicrendezvous@bikelist.org
> Subject: Re: [CR]OT: Asian production of modern famous makes....
> Message-ID: <20030209.140609.-203769.44.richardsachs@juno.com>
> Content-Type: text/plain; charset=us-ascii
> MIME-Version: 1.0
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> Message: 3
>
> snipped:
> TheMaaslands@comcast.net> writes:
> 1) "If you look carefully, the tennins market has often been a
> few years ahead of the bike (industry)...in developing and
> adapting new materials and technology."
> and
> 2) "An ideal product to have produced by inexpensive reasonably
> well-educated dependable workers. In my mind, that worker
> description does not point to any likelihood of these components
> ever being produced in Europe, Japan or North America. That
> may be where the design process will be handled but production?
> highly unlikely!"
>
>
> 1) more than ever before, the bicycle industry is now part of the
> sporting goods industry. it mimics the packaging, the synergy, the
> glitter,
> the merchandising , etcetera of the ski biz, the running shoe biz,
> the
> name-your-fav-high-profile-sport biz. imho, the way some of the
> major firms promote their bicycles, you'd think they'd (the
> bicycles)
> pedal by themselves. that take some big balls! perhaps this is
> attributable
> to the tennis market's 'influence'.
> and
> 2) the more things change, the more they stay the same. how different
> is this than the 'old days' when, tho' we hoped the great frames
> were
> made by the guy whose name was on the downtube, the work was
> almost always delegated. rather than have an underling or assistant
> be part of the production, the suits now have it done offshore.
> as martha says, "It's a good thing."
> e-RICHIE
> Richard Sachs Cycles
> No.9, North Main Street
> Chester, CT 06412 USA
> http://www.richardsachs.com
> Tel. 860.526.2059
> ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
> On Sun, 09 Feb 2003 13:03:41 -0500 Mara & Steven Maasland
> <TheMaaslands@comcast.net> writes:
> > Angel wrote:
> > > I was talking to someone recently that had been over to Taiwan (I
> >
> > > think that's where) for some bike business and the person cited a
> >
> > > long list of bike manufacturer names that were on bikes coming off
> >
> > > the same assembly; I don't remember the names but I do remember
> > > being really surprised as the list included some respected,
> > > including European, names.
> >
> > In my last job, where I was International Sales Director for one of
> > the
> > world's biggest and most respected tennis racquet makers, I
> > personally
> > observed many modern bike frame components being made in Asia. Many
> >
> > used the exact same 'vendors' that we used for our tennis racquets.
> >
> > This is all very logical as new non-ferrous materials become the
> > 'style
> > du jour'. If you look carefully, the tennins market has often been a
> >
> > few years ahead of the bike and other industries in developing and
> > adapting new materials and technology (Likely because of lesser
> > liability concerns and greater earnings per tech dollar
> > returns.)Carbon
> > fibre is just one very good example. Contrary to public perception,
> >
> > carbon fibre is not terribly hightech, it is also highly labor
> > intensive. An ideal product to have produced by inexpensive
> > reasonably
> > well-educated dependable workers. In my mind, that worker
> > description
> > does not point to any likelihood of these components ever being
> > produced in Europe, Japan or North America. That may be where the
> > design process will be handled but production? highly unlikely!
> >
> > Steven Maasland
> > Moorestown NJ