Archived posting to the Leica Users Group, 2002/12/20

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Subject: Re: [Leica] Re: Leica Price increase
From: John Nebel <nebel@csdco.com>
Date: Fri, 20 Dec 2002 18:14:44 -0700 (MST)

On Fri, 20 Dec 2002, Tim Smith wrote:

> John Nebel wrote:
> 
> >Leica may have a cost problem.
> >
> > >From the Economist:
> >
> >"...virtually all of Germany's biggest firms are setting up plants abroad
> >to make products more cheaply"
> >
> >"The hourly cost of labour in manufacturing industry in western Germany,
> >including wages, social-security (including health) and pension
> >contributions, is 13% more than in America, 43% more than in Britain and
> >59% more than in Spain, according to the US Bureau of Labour
> >Statistics..."
> 
> The Economist has been on an anti-German tack for awhile now, given the 
> apparent socialist aspect of their labor laws, etc.
> 
> It's one thing to move, say, a garment industry off-shore, another to move 
> an industry with highly skilled workers. What part of Leica's production is 
> done in Portugal now? Could you move manufacture of the entire product line 
> to China, and keep the status of the product? Seems doubtful.
> 
> Nonetheless, German industry is facing a crisis. I wonder how Mercedes 
> (sorry, DaimlerChrysler) and BMW will cope when car sales slump next year 
> and the year following.
> 
> 
> 
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> 

Hi Tim,

Actually the US might not be a bad place for Leica manufacture.  OK, the
Hubble telescope is a famous counter example, but the Americans are pretty
good at precision construction.  Why not put manufacturing close to the
major market and the top imaging chip company?

John


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