China Manufacturing Companies List
Robinson said the company had been building its scale manufacturing platforms in India and China for some years, acknowledging their economies of scale and lower labour costs. "The move also allows us to capitalise on ...
China Manufacturing Companies List
20Relevant offersIndustries US marketing pays off for Chch firm Sydney entrepreneur joins Trade Me board Barry Hart loses ‘irrelevant’ appeal Wage costs rise for employers Lion buys Emerson's craft brewery Race is on for Haier F&P takeover GPG sell off continues High price hits Z petrol sales CallPlus boss admits turnaround dragged Kate's legs set the style tone The country’s largest union blames the high dollar for today’s news that manufacturer Rakon will cut 60 jobs as it sends more production to China and India.
It is a sign the crisis in manufacturing is deepening and follows repeated warnings from the business that the strength of the New Zealand dollar and its volatility were hurting, the Engineering, Printing and Manufacturing Union said. The kiwi is currently worth more than 82 US cents and has traded above US80c for most of the year.
“These redundancies are deeply concerning, not just for our members but for the entire New Zealand manufacturing sector. If even a high value, specialised manufacturer such as Rakon feels it can’t make a go of manufacturing in New Zealand then the sector is in real trouble,’’ EPMU manufacturing industry organiser Louisa Jones said.
“There are a number of simple steps the Government can take to support manufacturing if it would only recognise there’s a problem and begin to address it, starting with the high New Zealand dollar.
“New Zealanders want a strong economy that lifts our wages and gives young people a reason to build a future here. This will never happen until the Government gets serious about supporting manufacturing,’’ Jones said, adding that Statistics NZ figures show the manufacturing sector has 40,000 fewer jobs now than it did in 2008.
Rakon shares have come back from an initial 12 per cent jump on the production move news. They were trading up 7.2 per cent, or 3 cents, at 44c each shortly before 1pm.
Earlier today, the manufacturer announced a restructure that will see up to 60 New Zealand jobs cut as production is moved to India and China.
The Auckland-based maker of crystal timing devices used in electronics said the move would save it $10 million a year with 70 per cent of that in place by April.
Rakon reported what its chairman Bryan Mogridge called a "disappointing" annual loss of $420,000 in September and pleaded with shareholders to stick with the NZX-listed company.
Rakon CEO, Brent Robinson said he hoped the company's shareholders would see the "realignment" of its New Zealand operation as a positive step.
"It gives us an opportunity to further grow our business, we've got a lot of growth in the markets that we are addressing and this enables us to move those markets and business opportunities forward," he said.
Robinson said Rakon's New Zealand facility would concentrate more heavily on the company's growing research and development projects, but jobs would have to be cut because of a highly competitive market for smartphone components.
"We were hoping that we wouldn't be reducing our headcount here in New Zealand and we could offset it with high value telecommunications infrastructure but that's actually been quite a bit softer this year than we were anticipating.
Robinson said the Chinese expansion would be funded "partly from cashflow and partly from debt", although he said the exact cost was confidential.
Expansion of the "over-full" Indian facility would be paid for directly from the cashflows of the profitable Centum joint venture that Rakon holds a 49 per cent stake in.
Robinson said the company had been building its scale manufacturing platforms in India and China for some years, acknowledging their economies of scale and lower labour costs.
"The move also allows us to capitalise on significant global growth in demand for smart wireless devices. Our teams in China and New Zealand are also working collaboratively on a number of initiatives to reduce cost and improve productivity to further boost returns from this business," he said.
"Whilst it is very positive that Rakon is increasing market share in our target markets, we have to be realistic and accept it is not possible to sustain labour intensive elements of manufacturing activity in New Zealand for such globally competitive markets," Robinson said.
Rakon would continue to manufacture temperature compensated crystal oscillators (TCXOs) in New Zealand using its automated and proprietary manufacturing processes along with other high performance products. New Zealand also continues as the head office for the Rakon Group.
Robinson said Rakon will also realign its activities in the United Kingdom and France, with a small number of job losses that had not yet been decided.
Rakon are going the same way as have many ohers because even with a lower dollar we cannot compete with China and India where wages conditions etc are far cheaper. This is a World Wide trend and the reason as to why China has HUGE foriegn Exchange surpluses to invest right around the world as they have been doing so for many years. The Long Suffering shareholders in Rakon have been on a cosiderable slide for several years already. They too will become yet another Take Over Target. The Union is whistling in the wind on this issue and not facing reality. Just ask the people in the U.S.A. how many of thier manufacturing jobs have gone to china.
This is what happens when the government *gives* over $9m in funding to a company that is already doing "very nicely thank you". Big, already profitable companies have little trouble gaming the system to get very hefty handouts of taxpayers' money for R&D while many of NZ's best and brightest end up having to go offshore to develop their own excellent ideas. R&D grants are a rort and should be replaced with non-transferrable over-unity tax credits for R&D. That doesn't cost the taxpayer a single red cent and would make it much easier for startups to attract private angel and VC funding.
I suppose the union wants everyone to pay $3 a litre of petrol so the owners of Rakon can keep to their same lifestyle. Also dropping the NZ exchange rate to make it artifically lower than what it should be can have major ramifications when the countries exchange rates come right.
More jobs lost... seems to be a daily news story. I'd hate to imagine what the unemployment rate (especially the youth unemployment rate) would be in this country if we couldn't up and leave for Australia so readily.
Thats because the left biased MSM choose to not report the success stories of places that are employing more people. If you report only half the news you get better reactions from the general public.
Thank the trade union movement and its restrictive practises. Prior to next election there will be a mass migration of production because of the possibility of a socialist coalition. NZ will be worse than Greece in less than 2 years and the country will be on the ropes..
so how come john key hasnt deregulated the labour market to create massive jobs?? hes had 4 years of destryoing our rights and yet jobs are pouring overseas... its a bit rich that you some how blame previous governments and furture governments for john keys complete and utter failure as a leader. time to get off planet key and come over the real world.
Today's labour market needs to be flexible. Globalisation is here to stay. Taxpayers money, spent propping up failing industries, should be spent on re-training and educating. Whilst we are competitive in primary industry due to rainfall and pastoral programs, manufacturing will never be our strength. We as a country need to focus on high value-added activities. Incentivise R & D, we need to innovate. Get smarter! Policy in Finland paved the way for Nokia in the 90's and early 2000's. Although they have lost their way recently. We need to get smarter to survive economically as we won't win in a race to the bottom. Stop our love affair with residential property, tap into our No. 8 wire mentality and let's be successful in today's 'market'.
there is plenty of money and production in our economy, the problem is that the majority of this goes to the 1%. we need to pay our workers more to keep the skilled ones in the country, but companies want to make profit so they pay as cheap as they can.
The problem is China's lack of labour laws. It enables companies (who value profit above all else) to get cheap labour that they cannot get in western economies because of the standards that they have to meet.
This will only improve when China, India and others enact and enforce such laws which will make them less competitive in this sector. Why would they do this when it would cost their country jobs and voluntarily make them less competitive? Answer is, they won't.
What western governments need to do is to use the tools available to them, like taxation, to make it cost prohibitive to do business like this and then relax these laws once these countries start playing by the same rules.
Yeah in the meantime while you are punishing local businesses with taxation they will have to cut jobs to pay for the extra expenses. Higher unemployment, less money to invest in training and developement and R&D in other sectors, which is needed to maintain competitiveness. Protectionism does not work, it hurts both consumers and businesses.
Next you will be saying "yeah but you can invest the tax gained back into the economy". The money in the hands of government for more centralised planning that takes power away from a free market economy.
Actually, its not their labour laws, its the international price they pay for labour. China artificially keeps its currency low, the result is that its labour cost are low, so it costs less to produce everything in China. So the Chinese get high employment in jobs that used to be in the west.
The labour laws here aren't actually too bad and getting better all the time. They have 3 months maternity leave, 3-4 weeks holiday leave (admittedly it has to be taken at certain times), sick leave policies etc, just like the west. The implementation and enforcement of these laws however is lacking, but it is catching up. These days in Shenzhen/Guangzhou the average wage is around 3-4 times higher than it was 10 years ago, but still only around 3000-5000 RMB (about NZD 500-1000 per month). This sounds low, but you can live to the same standard as westerners do on that wage here. Why? All their goods are produced locally meaning cost of living is only really measureable within the country, wheras in NZ we are much more globally connected so our cost of living is subject to global markets (think about the price of milk - local milk here is about $1.50 a litre, NZ milk $14 a litre).
But it is changing here quickly - soon China won't be as cheap as it was, particularly if the US start cracking down on China's currency controlling. A lot of places are now looking at SE asia - Vietnam/Cambodia/Thailand and Myanmar long term, who will start being the worlds labour sweat shops.
this is john keys neo-libral dream. moving jobs off shore so you can make more profit. also note that johns banking mates are creaming us for billions as well. as far as our government is concerned this is how it should be.
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It is a sign the crisis in manufacturing is deepening and follows repeated warnings from the business that the strength of the New Zealand dollar and its volatility were hurting, the Engineering, Printing and Manufacturing Union said. The kiwi is currently worth more than 82 US cents and has traded above US80c for most of the year.
“These redundancies are deeply concerning, not just for our members but for the entire New Zealand manufacturing sector. If even a high value, specialised manufacturer such as Rakon feels it can’t make a go of manufacturing in New Zealand then the sector is in real trouble,’’ EPMU manufacturing industry organiser Louisa Jones said.
“There are a number of simple steps the Government can take to support manufacturing if it would only recognise there’s a problem and begin to address it, starting with the high New Zealand dollar.
“New Zealanders want a strong economy that lifts our wages and gives young people a reason to build a future here. This will never happen until the Government gets serious about supporting manufacturing,’’ Jones said, adding that Statistics NZ figures show the manufacturing sector has 40,000 fewer jobs now than it did in 2008.
Rakon shares have come back from an initial 12 per cent jump on the production move news. They were trading up 7.2 per cent, or 3 cents, at 44c each shortly before 1pm.
Earlier today, the manufacturer announced a restructure that will see up to 60 New Zealand jobs cut as production is moved to India and China.
The Auckland-based maker of crystal timing devices used in electronics said the move would save it $10 million a year with 70 per cent of that in place by April.
Rakon reported what its chairman Bryan Mogridge called a "disappointing" annual loss of $420,000 in September and pleaded with shareholders to stick with the NZX-listed company.
Rakon CEO, Brent Robinson said he hoped the company's shareholders would see the "realignment" of its New Zealand operation as a positive step.
"It gives us an opportunity to further grow our business, we've got a lot of growth in the markets that we are addressing and this enables us to move those markets and business opportunities forward," he said.
Robinson said Rakon's New Zealand facility would concentrate more heavily on the company's growing research and development projects, but jobs would have to be cut because of a highly competitive market for smartphone components.
"We were hoping that we wouldn't be reducing our headcount here in New Zealand and we could offset it with high value telecommunications infrastructure but that's actually been quite a bit softer this year than we were anticipating.
Robinson said the Chinese expansion would be funded "partly from cashflow and partly from debt", although he said the exact cost was confidential.
Expansion of the "over-full" Indian facility would be paid for directly from the cashflows of the profitable Centum joint venture that Rakon holds a 49 per cent stake in.
Robinson said the company had been building its scale manufacturing platforms in India and China for some years, acknowledging their economies of scale and lower labour costs.
"The move also allows us to capitalise on significant global growth in demand for smart wireless devices. Our teams in China and New Zealand are also working collaboratively on a number of initiatives to reduce cost and improve productivity to further boost returns from this business," he said.
"Whilst it is very positive that Rakon is increasing market share in our target markets, we have to be realistic and accept it is not possible to sustain labour intensive elements of manufacturing activity in New Zealand for such globally competitive markets," Robinson said.
Rakon would continue to manufacture temperature compensated crystal oscillators (TCXOs) in New Zealand using its automated and proprietary manufacturing processes along with other high performance products. New Zealand also continues as the head office for the Rakon Group.
Robinson said Rakon will also realign its activities in the United Kingdom and France, with a small number of job losses that had not yet been decided.
Rakon are going the same way as have many ohers because even with a lower dollar we cannot compete with China and India where wages conditions etc are far cheaper. This is a World Wide trend and the reason as to why China has HUGE foriegn Exchange surpluses to invest right around the world as they have been doing so for many years. The Long Suffering shareholders in Rakon have been on a cosiderable slide for several years already. They too will become yet another Take Over Target. The Union is whistling in the wind on this issue and not facing reality. Just ask the people in the U.S.A. how many of thier manufacturing jobs have gone to china.
This is what happens when the government *gives* over $9m in funding to a company that is already doing "very nicely thank you". Big, already profitable companies have little trouble gaming the system to get very hefty handouts of taxpayers' money for R&D while many of NZ's best and brightest end up having to go offshore to develop their own excellent ideas. R&D grants are a rort and should be replaced with non-transferrable over-unity tax credits for R&D. That doesn't cost the taxpayer a single red cent and would make it much easier for startups to attract private angel and VC funding.
I suppose the union wants everyone to pay $3 a litre of petrol so the owners of Rakon can keep to their same lifestyle. Also dropping the NZ exchange rate to make it artifically lower than what it should be can have major ramifications when the countries exchange rates come right.
More jobs lost... seems to be a daily news story. I'd hate to imagine what the unemployment rate (especially the youth unemployment rate) would be in this country if we couldn't up and leave for Australia so readily.
Thats because the left biased MSM choose to not report the success stories of places that are employing more people. If you report only half the news you get better reactions from the general public.
Thank the trade union movement and its restrictive practises. Prior to next election there will be a mass migration of production because of the possibility of a socialist coalition. NZ will be worse than Greece in less than 2 years and the country will be on the ropes..
so how come john key hasnt deregulated the labour market to create massive jobs?? hes had 4 years of destryoing our rights and yet jobs are pouring overseas... its a bit rich that you some how blame previous governments and furture governments for john keys complete and utter failure as a leader. time to get off planet key and come over the real world.
Today's labour market needs to be flexible. Globalisation is here to stay. Taxpayers money, spent propping up failing industries, should be spent on re-training and educating. Whilst we are competitive in primary industry due to rainfall and pastoral programs, manufacturing will never be our strength. We as a country need to focus on high value-added activities. Incentivise R & D, we need to innovate. Get smarter! Policy in Finland paved the way for Nokia in the 90's and early 2000's. Although they have lost their way recently. We need to get smarter to survive economically as we won't win in a race to the bottom. Stop our love affair with residential property, tap into our No. 8 wire mentality and let's be successful in today's 'market'.
there is plenty of money and production in our economy, the problem is that the majority of this goes to the 1%. we need to pay our workers more to keep the skilled ones in the country, but companies want to make profit so they pay as cheap as they can.
The problem is China's lack of labour laws. It enables companies (who value profit above all else) to get cheap labour that they cannot get in western economies because of the standards that they have to meet.
This will only improve when China, India and others enact and enforce such laws which will make them less competitive in this sector. Why would they do this when it would cost their country jobs and voluntarily make them less competitive? Answer is, they won't.
What western governments need to do is to use the tools available to them, like taxation, to make it cost prohibitive to do business like this and then relax these laws once these countries start playing by the same rules.
Yeah in the meantime while you are punishing local businesses with taxation they will have to cut jobs to pay for the extra expenses. Higher unemployment, less money to invest in training and developement and R&D in other sectors, which is needed to maintain competitiveness. Protectionism does not work, it hurts both consumers and businesses.
Next you will be saying "yeah but you can invest the tax gained back into the economy". The money in the hands of government for more centralised planning that takes power away from a free market economy.
Actually, its not their labour laws, its the international price they pay for labour. China artificially keeps its currency low, the result is that its labour cost are low, so it costs less to produce everything in China. So the Chinese get high employment in jobs that used to be in the west.
The labour laws here aren't actually too bad and getting better all the time. They have 3 months maternity leave, 3-4 weeks holiday leave (admittedly it has to be taken at certain times), sick leave policies etc, just like the west. The implementation and enforcement of these laws however is lacking, but it is catching up. These days in Shenzhen/Guangzhou the average wage is around 3-4 times higher than it was 10 years ago, but still only around 3000-5000 RMB (about NZD 500-1000 per month). This sounds low, but you can live to the same standard as westerners do on that wage here. Why? All their goods are produced locally meaning cost of living is only really measureable within the country, wheras in NZ we are much more globally connected so our cost of living is subject to global markets (think about the price of milk - local milk here is about $1.50 a litre, NZ milk $14 a litre).
But it is changing here quickly - soon China won't be as cheap as it was, particularly if the US start cracking down on China's currency controlling. A lot of places are now looking at SE asia - Vietnam/Cambodia/Thailand and Myanmar long term, who will start being the worlds labour sweat shops.
this is john keys neo-libral dream. moving jobs off shore so you can make more profit. also note that johns banking mates are creaming us for billions as well. as far as our government is concerned this is how it should be.
Featured PromotionsSponsored Content National World Business Technology Sport Entertainment Life & Style Travel Motoring Blogs Competitions Stuff.co.nzAbout Us | Contact Us | Mobile | View Smartphone Site | View Mobile Light Site SubscribeText | Follow us on Facebook and Twitter | Newspapers | Magazine subscriptions | RSS - Top Stories ServicesNewspapers in Education | A-Z Directories | Online Advertising | Print Advertising| Careers ClassifiedsTrade Me | Jobs | Property | Motors | Accommodation | Personals | Newspaper Classifieds NewspapersDominion Post | The Press | Waikato Times | Auckland Now | Sunday News | Sunday Star-Times Marlborough Express | Manawatu Standard | Nelson Mail | Southland Times | Taranaki Daily News | Timaru Herald Other SitesCuisine | NZ House & Garden | NZ Fishing News | NZ Life & Leisure | NZ Gardener | Fairfax Archives Breaking news?
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