So Your thought that China was your outsourcing solution? Think Again!

Excerpt from the Toronto Star of June 8, 2010.

Suddenly, strikes are surging across China as poorly paid workers — the engine of China’s economic miracle — are demanding a bigger share of the enormous wealth the country is earning from its booming export-driven economy.

Last week much of the country’s attention focused on a strike at a Japanese-owned Honda factory in southern China — for which Chinese authorities allowed rare and open reporting. Workers there won a 24 per cent pay hike.

Foxconn responded with a 30 per cent wage increase – and announced a further 70 per cent Monday. But few in China heard about the clash in Pingdingshan — or more than 15 other strikes that spilled into the streets of China in May.

Crothall, whose organization tracks labour issues inside China, confirms that China is experiencing a noticeable surge in strikes.

“Coming out of the economic downturn last year, workers were probably more willing to bide their time and not rock the boat,” he observes. “But now they’re seeing the economy booming again and workers who are paid low wages are asking questions and demanding better compensation.”

My Comments:

SO if anyone thinks that China is a safe and secure haven for cheap products. It might have been in the past but think again. People cannot be exploited all the time. The tide is changing in China and other far eastern countries. The west by moving manufacturing jobs to east virtually killed the’ goose that lays the golden egg’. Well the goose is now starving to death but not quite dead yet. Unemployment in the west was the result of moving our manufacturing jobs to the east but it was the west and North America in particular that gave the east and China in particular the boost of kiss of life. Now the west can no longer afford to buy from itself let alone the east, so both parties suffer and that is why China has to stimulate her own economy to take up the slack, but that cost money and who is going to pay for it. Yes the likes of Honda and Foxconn and eventually all the other manufacturers. Eventually the surviving companies will have to move their operations back to the west and start to rebuild or revive and re-stimulate the ‘goose’ so as to start laying some golden eggs by providing satisfying and rewarding manufacturing jobs again. But time is running out. The goose is dying and needs immediate attention.

What is SaaS all About?

We are becoming more and more familiar with the key benefits of Software as a Service (SaaS)

• Excellent experience.
• Very productive.
• Rapid implementation and optional higher quality deployment
• Minimal upgrade hassles
• Access to the “always-on” regardless of location
• Subscription pricing
• Anytime scalability and dynamic capacity
  
  

I know as I have just completed implementing PackManager by NuLogy and it is great!

What is the Carbon Footprint All About?

Sustainable development, carbon footprint, global warming, cap and trade, Kyoto, green this, green that. Who hasn’t seen, read and heard article after news report after blog, talking about how we are wrecking the environment and that things need to change. Is it really that big a deal?
Well, let’s think about what has been happening;

• Glaciers and polar ice caps have been retreating at an alarming rate and scientists are predicting that the arctic ice cap will melt by 2020 (if not earlier)
• Sea levels have risen between 4 and 10 inches since 1990 as a result of the melting polar ice caps
• We’re seeing Increasingly violent storms. 35 years ago, 1 in 6 tropical storms were considered to be major storms, in recent years, 1 in 3 are major storms.
• Increasing floods and droughts
• Scientists are constantly reporting on impact on wildlife due to global warming from polar bear problems in northern communities to changing bird migration patterns.
• Scientists are now (mostly) in agreement that global warming is happening and that there is a significant need to do something now.

People and governments are starting to listen. Many governments are setting targets for greenhouse gas reductions. People are looking for information to help them make better decisions when buying. Want to know More.....

Price are Down!

Titanium demand collapse will depress prices through 2010
TITANIUM demand has collapsed this year and the market price for benchmark aerospace ingot is almost 70% off its peak and probably at its cyclical bottom. And, according to news reports from the International Titanium Association's recent annual conference, there's little indication of a major upturn in purchasing or pricing anytime soon.
Read more.........

Molybdenum prices are sliding backwards
Spot prices dip due to uncertain demand trend from steelmakers
Although U.S. steelmaking is close to 60% of capacity, market prices for molybdenum, a key alloying smelting metal, has slipped to an average $14.55/lb this month (from $16.18 in July) and could be selling by a dollar or more cheaper next month. Read more......


Aluminum prices are being depressed by excess supply

World aluminum prices have slipped to an average 83¢/lb this month, bringing the annual average down to 70¢ (from $1.17 in 2008) as demand remains soft and global stocks are at record highs of 5.8 million metric tons

Ferrovanadium prices are slipping

The alloying metal was selling as low as $7.40/lb in April because of a serious overhang of inventory and collapsed demand from specialty steelmakers. Prices inched back up from May to August in line with reduced stockpiles caused by expanded exports and slow and gradual improvement in purchases by the domestic steel companies. Read more......

So KRAFT is planning a Cleanup?

First they make an offer on Cadbury's now they decide to have a clean up. Of what? Their supplier base. Read more about it as found in Supply Excellence.