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Posted by Chris Lewis on May 11, 2007, 2:42 pm
> It seems fair to me to assume that since Milwaukee built a large
> fraction of their tools for the US market in the US before the buyout
> and those facilities are still in operation that they're still
> producing for the US market in the US.
It may seem fair to assume, but the huge difference in labor costs
often completely swamp transportation and/or retooling costs.
If they can ship gluten that far, portable power tools is a no-brainer.
You have heard of outsourcing haven't you? :-(
Delta's bandsaws, for example, have been made in many different
places over the years. At times by companies who produce
clones to be sold as different brands on exactly the same lines.
> While undoubtedly they're
> bringing in parts from all over for assembly, doesn't seem at logical
> to ship from overseas to the US and then back to, say, Australia when
> could build for that market much closer...
The world tool market is a confusing place. Take a look at
a Woodworking magazine tool review sometime and notice how
many of the planers look identical except for minor differences
in the plastic shells.
Hint: they were all made in the same place.
Good chance that TTI is selling "milwaulkee" in the far eastern
market, except that the shell is a different color and the brand
name is completely unpronounceable.
--
Chris Lewis,
Age and Treachery will Triumph over Youth and Skill
It's not just anyone who gets a Starship Cruiser class named after them.
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Posted by Tim Smith on May 11, 2007, 2:55 pm
>> It seems fair to me to assume that since Milwaukee built a large
>> fraction of their tools for the US market in the US before the buyout
>> and those facilities are still in operation that they're still
>> producing for the US market in the US.
> It may seem fair to assume, but the huge difference in labor costs
> often completely swamp transportation and/or retooling costs.
> If they can ship gluten that far, portable power tools is a no-brainer.
On the other hand, if a manufacturer has an efficient manufacturing
process, the difference in labor costs become much less significant.
The best example of this (although it is not a tool company, the
principle still applies) is Dell. The manufacture computers for country
X in or near country X. Dells for the US market, for example, are made
in the US. The cost of shipping a completed computer from Asia is more
than the difference in labor costs between well paid US workers with
full benefits, and prison labor in some 3rd world country.
It just doesn't matter if labor costs here are 10x labor costs there,
when you only have a few minutes labor going into the product.
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Posted by Matt Barrow on May 11, 2007, 3:51 pm
> The best example of this (although it is not a tool company, the
> principle still applies) is Dell. The manufacture computers for country
> X in or near country X. Dells for the US market, for example, are made
> in the US.
Not any more.
--
Matt Barrow
Performace Homes, LLC.
Colorado Springs, CO
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Posted by Tim Smith on May 11, 2007, 4:32 pm
>> The best example of this (although it is not a tool company, the
>> principle still applies) is Dell. The manufacture computers for country
>> X in or near country X. Dells for the US market, for example, are made
>> in the US.
> Not any more.
You're thinking of Dell's support. They've moved that overseas. They
still build the computers in or near the country they sell them. Note
that support is almost all labor.
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Posted by Matt Barrow on May 11, 2007, 5:07 pm
>>> The best example of this (although it is not a tool company, the
>>> principle still applies) is Dell. The manufacture computers for country
>>> X in or near country X. Dells for the US market, for example, are made
>>> in the US.
>> Not any more.
> You're thinking of Dell's support. They've moved that overseas. They
> still build the computers in or near the country they sell them. Note
> that support is almost all labor.
My Dell, bought in February, says "Made in China".
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> fraction of their tools for the US market in the US before the buyout
> and those facilities are still in operation that they're still
> producing for the US market in the US.