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Thread ID: 89029 2008-04-18 01:01:00 No comments on F & P closure ! Digby (677) PC World Chat
Post ID Timestamp Content User
659923 2008-04-18 02:21:00 It is a never ending circle. Once chinas wages rise, they will then be sending the work to cheaper countries, perhaps to Africa. Eventually it may end up coming back to NZ as our wages and economy fall below that of other low wage countries.

It's already happening. I have a job atm that was outsourced to NZ from South London. I had it explained to me that although india has low wages, they also have low quality output, so they're ok for monkey work but not much else.

This kiwi monkey apparently provides good quality work for a lower price than they'd pay a similar quality brit or european. I'm happy though, because they still pay me too much, even if they think they don't... can't wait for a payrise?
Thebananamonkey (7741)
659924 2008-04-18 02:24:00 You seem to have worked for a lot of different companies.

Yeah well, they had a habit of making people redundant or closing or something.

Akld Uni
F&P - redundant
Orcon (only briefly before they moved to Takapuna)
A PC Wholesale/retail who did a runner leaving customers/suppliers/staff out of pocket and shall be left unnamed
A small PC shop in Mt Albert before overseas owner sold it

Still, does this mean we can expect dirt cheap F&P appliances here soon? Don't think I'll hold my breath...............
pctek (84)
659925 2008-04-18 03:51:00 How do VERY high wage manufacturing countries like Germany and Italy get on?

I have heard that some Chinese companies are relocating to Vietnam where labour is cheaper. Uganda anyone ? Nigeria ?
Digby (677)
659926 2008-04-18 04:19:00 The irony of it all!
Manufacturers are going overseas because of low cost.
Rugby players are going overseas because of high pay.
Both ways we lose. Fixed incomes earners like us are doomed.
Taurus (9579)
659927 2008-04-18 04:26:00 It is a never ending circle. Once chinas wages rise, they will then be sending the work to cheaper countries, perhaps to Africa. Eventually it may end up coming back to NZ as our wages and economy fall below that of other low wage countries.

We need a bold and strong government to reinvent the country. NZ cannot just rely on agriculture and dairy. It needs to diversify.
Taurus (9579)
659928 2008-04-18 04:31:00 Still, does this mean we can expect dirt cheap F&P appliances here soon? Don't think I'll hold my breath...............

Good point.

This saving is generally not passed on to the consumer. But if Greg is following all this money made by F&P will go back into the economy so we will all benefit - yeah right!

Damn I wish I could change my name to 'economy"
sam m (517)
659929 2008-04-18 04:36:00 Singapore faces the same problem more than a decade ago. Because of rising wages and other costs, most of the manufacturing activities shifted to the cheaper neighbouring countries. The government embarked on an aggessive drive that attracted high tech industries, R&D work, biotech, pharmaceuticals, petrochemical plants, etc instead. Though those labour intensive manufacturing factoires had moved out, these companies were given incentives to do their research in Singapore.

I empathise with those about to be made redundant especially those with financial commitments and families. I wish the government could be more pro-active instead of waiting for things to fall apart first before considering action. On hind sight, I am not sure they know what to do.


It is a never ending circle. Once chinas wages rise, they will then be sending the work to cheaper countries, perhaps to Africa. Eventually it may end up coming back to NZ as our wages and economy fall below that of other low wage countries.

Yup Singapore outsource their stuff because of cost and landsize. Yet they are quite successful. Yup .. when China gets expensive, they will ship it to elsewhere.

There is going to be a shift for NZ, how it does business. They may use more brain power in NZ and ship the other works overseas where its cheaper. In theory that should make NZ better off .. as a higher incomer earner.

I don't think manufactures would make it cheaper to buy, they will price it as best as they can to their advantage. Sucessful business isn't about the cheapest either, if they can command a price premium then they will.

I just got in contact with a friend in a few years, she's a tailor Bride and Groom fashion designer with clients in France and Italy. She was in Hong Kong but she relocated/started her workshop in Guangzhou (just north of HK about the same difference between Macau).

None of these I think is related to the FTA. These things has been going on for a while. FTA has only catalysed it, not started the idea. Many companies has been doing this before the FTA was annouced.

I doubt many of us would simply pay more for the country of origin (even if it is made in NZ). Many of us would just buy what is the cheapest. Plus its a NZ design behind it, just produced in a diff country by NZ company standards.
Nomad (952)
659930 2008-04-18 07:16:00 Yeah well, they had a habit of making people redundant or closing or something.

Akld Uni
F&P - redundant
Orcon (only briefly before they moved to Takapuna)
A PC Wholesale/retail who did a runner leaving customers/suppliers/staff out of pocket and shall be left unnamed
A small PC shop in Mt Albert before overseas owner sold it

Still, does this mean we can expect dirt cheap F&P appliances here soon? Don't think I'll hold my breath...............

I think we get pretty cheap F&P products at the moment, I mean you can get a F&P pride washing machine for just $699, which I don't think they have been any cheaper. Especially considering material costs have risen a lot. However I think they should be looking at catering to the upper market, rather than the low cost market. Germany seem to be able to manufacture products over there, even though their wages are more than NZ. However their lower priced products are often built in low wage countries, but you can see the difference in quality.
robbyp (2751)
659931 2008-04-18 09:04:00 (There you go Digby, comments!)

Outsourcing ourselves eventually might become true...

(Who says auctioning off New Zealand via eBay was rubbish a few years ago?)
Renmoo (66)
659932 2008-04-18 09:27:00 Turning NZ into a high-innovation, R&D centre won't happen if we can't train, and retain, highly qualified people. somebody (208)
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