Just had to tell a good guy who's done 20+ years of good work for this company that his position is moving to Shenzhen.

__________________
1961 220b: first project car - sold.
2000 CLK 430: first modern Benz - sold.
2001 CLK 55: OMG the torque!!! - sold
1972 280SE 4.5: Baby Gustav
1991 300TE 4Matic: Gretel the Snow Bunny - sold
1978 300SD: Katz the Free Man - given away
1980 Redhead: Darling Wife

Suks - so probably taking him out for Chinese lunch is bad idea?

__________________
BENZ THERE DONE THAThttp://www.peachparts.com/shopforum/...c/progress.gif
15 VW Passat TDI
00 E420
98 E300 DT
97 E420 Donor Car - NEED PARTS? PM ME!
97 S500
97 E300D
86 Holden Jackaroo Turbo D
86 300SDL
(o\|/o)

One of these days, somebody is going to figure out how to build those things in this country for a reasonable cost and we'll quit having to do move jobs there. Drop a modern plant in KY. We have the staff, the transportation and a good central location.
I feel for ya Jim, but more for the guy who is watching his job leave.

It is a very tough battle. The economic differential between 2 countries makes it almost impossible to make a good argument to E Management. We have outsourced quite a bit to MX and Central America. If we keep the work is US we can't be competitive with pricing and its not just two or three points difference its almost 60 points less expensive to oursource.

__________________
BENZ THERE DONE THAThttp://www.peachparts.com/shopforum/...c/progress.gif
15 VW Passat TDI
00 E420
98 E300 DT
97 E420 Donor Car - NEED PARTS? PM ME!
97 S500
97 E300D
86 Holden Jackaroo Turbo D
86 300SDL
(o\|/o)

Damn, that's gotta suck. I've had to fire good people who just weren't capable or reliable and that was hard enough.

__________________

1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)

Biggest problem in your equation Bob is that labor cost often isn't the killer. The engineers I'm hiring in Shenzhen (and Guadalajara) really aren't that much cheaper than their US counterparts, and direct labor cost makes up a tiny fraction of the high tech products we build.

It's all about supply chain. 80%+ (by cost) of the components used originate in Asia. Buying them locally can remove 15% to 30% of the materials cost from our products.

And believe me - my sympathies are entirely with that guy (and the 83 others in his shoes), not myself.

__________________
1961 220b: first project car - sold.
2000 CLK 430: first modern Benz - sold.
2001 CLK 55: OMG the torque!!! - sold
1972 280SE 4.5: Baby Gustav
1991 300TE 4Matic: Gretel the Snow Bunny - sold
1978 300SD: Katz the Free Man - given away
1980 Redhead: Darling Wife

Nobody ever said business had a soul. All of us who are successful have had to sacrifice some ethics and feeling, make some moral compromises we have to live with. It's unavoidable if you wish to succeed.

__________________

Now, make him happy and tell him that you will keep him on. He's done 20+ years of good work, so you might be able find something else for him to do. You know how hard he works, try retraining him.

What position was it if you don't mind my asking?

__________________
You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

So in fact labor costs are the issue as 80%+ by cost of your components are not made in the US but in China. No doubt because it's too expensive to make them here.

- Peter.

__________________
2021 Chevrolet Spark
Formerly...
2000 GMC Sonoma
1981 240D 4spd stick. 347000 miles. Deceased Feb 14 2021
2002 Kia Rio. Worst crap on four wheels
1981 240D 4spd stick. 389000 miles.
1984 123 200
1979 116 280S
1972 Cadillac Sedan DeVille
1971 108 280S

Some day we will have to let go of the profits and growth at all costs, eat or be eaten mentality.

__________________
You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

What's going to happen when everyone's job has gone to China.
That last person employed will be the guy sacking everyone else.
We were booming 40 years ago, couldn't find enough workers.
Then the Reagan administration gave tax incentives to American companies to offshore manufacturing industries, and developing nation status to China to give the Chinese the advantage.
Prices didn't drop that much for consumers, but welfare went through the roof as Americans lost jobs they'd had for many years and their children couldn't find jobs because we can't compete with a country that can manipulate it's economy and fix it's exchange rate. 30 million jobs have left America, has the country and society benefited from these changes.
Not that I can see.
It's time a real effort was made and imports are boycotted.
Buy American has to become more than a slogan.

__________________
1989 W124 260E

Perhaps though I suspect the damage has gone beyond the point of no return. Of course it would also be necessary to be able to actually find American products to buy.

- Peter.

__________________
2021 Chevrolet Spark
Formerly...
2000 GMC Sonoma
1981 240D 4spd stick. 347000 miles. Deceased Feb 14 2021
2002 Kia Rio. Worst crap on four wheels
1981 240D 4spd stick. 389000 miles.
1984 123 200
1979 116 280S
1972 Cadillac Sedan DeVille
1971 108 280S

Who was it, maybe someone here, who had to go to Mexico to train the people who were going to take his job?

Anyway, what do we need to buy anymore? At this point in my life I have everything I need except a new(er) car every few years.

__________________
You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

It's hard to get anyone to care.
We're too caught up in everything else to worry about where every product comes from.
Although we do it with the parts we purchase, buying cheap Asian copies is bad economics.

__________________
1989 W124 260E