Thread: Nappies To Asia

Originally Posted by DiscoMick

Only because the Germans refused to sacrifice their manufacturing industries for short term thinking and took a long-term approach.

it would involve germany making and exporting quality products. something which australia isnt able to do.

Originally Posted by Eevo

it would involve germany making and exporting quality products. something which australia isnt able to do.

We make some fantastic high quality items here in Aus But we really Struggle to make them at a price that is competitive on the World market unfortunately.

Originally Posted by trout1105

We make some fantastic high quality items here in Aus But we really Struggle to make them at a price that is competitive on the World market unfortunately.

you my friend, have hit the nail on the head.

Originally Posted by Eevo

you my friend, have hit the nail on the head.

That is where brand comes into it. Quality itself won’t guarantee a high price without brand prestige a la BMW Mercedes etc (even though the latter has decoupled quality from price in later vehicles). Look at the panic in Germany now given entrenched supply chains ZF Bosch etc around the growth in EVs they cannot easily react to and end up having to import battery tech from Asia. No country is immune from disruption.

I read the Germans are investing heavily in lithium battery manufacturing. Sonnen seem to do good lithiums. No reason we can't make lithium batteries here, if we have the commitment to make it happen.

We can make great stuff in this country and export it successfully. Look at the success of ARB, Ironman, TJM etc. But we have to be prepared to invest in the future, instead of just ripping out the profits and going fishing.

Surely we have others on here versed in Macroeconomics?

So much of this is BS it’s not funny.

IF - IF we want local manufacturing then WE need to stop shopping around - WE are the cause.

Our Super, Our buying and spending habits are a direct cause of manufacturing moving off shore.

If we buy Aus made, we will pay a premium. The local premium then levels our inflated wages and we slide back in cost of living.

Our future is to be a tech hub, develop and sell technology and have cheaper nations produce it.

Using any European nation is fraught with error as the EU levels a lot of that playing field.

Australia is:
First world wages
Second world infrastructure

And limited by geography and logistics.

All good points.
The USA seems to be having the same debate, and losing to China. But China is itself no longer a cheap manufacturing base. Japan and South Korea are at different stages on the same curve. Unfortunately, we just jumped off.

Long term it will all swing back around.
Look how it all changed..

Made in Taiwan
Made in India
Made in Phillipines
Made in China

As each one demands better living and wages the manufacturing or services relocate.

Eventually the field will level and local will be the go.
Then the cycle will start again.

World financial markets are a totally manipulated construct, and it’s manipulation is constant to maintain “growth”.