none

Manufacturing in China ‘not as cheap as you think’

13-11-2013
by 
in 
Tony Panrucker ...
Most Australian business owners are under the belief that manufacturing goods in China is cheaper, according to a senior manufacturing executive.
 
Sevaan Group CEO Tony Panrucker says manufacturing in China can actually be more expensive in many cases.
 
Panrucker has questioned the benefits of sourcing goods from China.
 
Long lead times, delivery delays and quality assurance issues should all be taken into consideration when dealing with the world’s second largest economy, he warns.
 
"Our blind willingness to outsource manufacturing to Asia in search of a lower unit price is largely responsible for Australian industry shooting itself in the left foot.
 
“Then on top of this, poorly thought out stimulus packages by governments are reloading the rifle only to leave us shooting ourselves in the right foot.
 
"Therefore, Australian industry is collectively losing its legs to move forward unless we do something about these damaging circumstances."
 
The Sevaan Group, an engineering specialist and fabricator, has been expanding its activities at a time when most companies are scaling back or folding.
 
Panrucker says the manufacturing industry should be weaned off the habitual default of outsourcing manufactured items from China.
 
And government should look more closely at how it structures its ways to stimulate business.
 
“Why we are not manufacturing more for ourselves domestically is a complete mystery to our company as we have shown just how simple and successful it can be, Panrucker says.
 
“Even though the unit price might be a little bit higher, speed of delivery is incomparable, standards to which we manufacture are far superior and constant, and the potential for delay in delivery is almost nonexistent.
 
“Through proper business analysis, in almost all cases orders can be facilitated locally.”

Related news & editorials

  1. 18.10.2018
    18.10.2018
    by      In
    Amidst global concern about plastic waste in the world’s oceans, it is rather ironic that it is a soft drinks company that is actually doing something about the problem. SodaStream International, which has always taken a different approach to the soft drinks market, is now taking a different... Read More
  2. 16.10.2018
    16.10.2018
    by      In
    The Government has unveiled a $5 million scheme to encourage high-quality graduate engineers to work in Australia’s automotive sector. The Automotive Engineering Graduate Programme aims to increase the level of advanced engineering skills in the sector and is part of the $100 million Advanced... Read More
  3. 15.10.2018
    15.10.2018
    by      In
    Industry Update is delighted to announce that we are expanding our video offerings with a new series of tutorial style videos that perfectly complement our existing library of news style videos.
    In the first series, we are partnering with sensor specialist VEGA to publish eight playlists of videos... Read More
  4. 15.10.2018
    15.10.2018
    by      In
    Kennards Hire is certainly “doing its bit” to help Australia’s drought stricken farmers and their families. The work began with the Kennards branch network throwing itself behind the Buy a Bale initiative, and is now continuing with a key role in the Mega Farm Rescue.
    Kennards Hire team members... Read More