Subject:
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Re: MADE IN CHINA?!?!!?!?! that's IT Lego Re: Lego changes CEO...
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Newsgroups:
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lugnet.lego, lugnet.general
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Date:
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Fri, 22 Oct 2004 19:21:05 GMT
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Viewed:
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6263 times
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In lugnet.lego, James Powell wrote:
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as sad (wrong depending on how ones sees it) as it may sound that TLC is
moving production to China it *IS* the way of this century. Expect to see
a lot of this occuring for the rest of our lifetime! 1st world countries
*CAN NOT* compete against the wages of those countries. That is off
coruse the way of capitalism. I’m not saying it is wrong, that is just the
way it is.
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Actually, I don’t think it will save them much at all. Sea transport will
now be across the atlantic, they have built the factories in Hungary, have
the ones in Bulland (sp), ect. Cost to run the actual factories is
relatively low in terms of personel. IIRC, when Enfield was closed, it used
1 person to run 34 molding machines. They would use more people where the
molds are changed more often, but not many more. Probably not more than 3-4
people on the floor of the molding shop at a time. Having seen the packing
display at LLCA, I would suspect a similar level of supervision amongst the
packing machines. Meaning that the total on the floor people in a plant is
like 8-10 at a time, plus service people. (Probably another 8-10 people).
Given a 1 min mold cycle, and 8 pieces a mold, that gives you:
8x34x60x8 (one shift)
=130560 bricks
To cover the cost of the employees. I’d suspect that the shot time is rather
less than a min for most elements. I’d also think that given inteligent
design, those numbers have come down rather than gone up. The press release
talks of overcapacity, not undercapacity.
Lego is a capital intensive operation, rather than a labour intensive one.
Maximizes advantages of working in 1st world, minimizes advantages of 3rd
world.
James Powell
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I would agree here. Maybe they are looking to take advantage of a newer,
cheaper ABS supply? Is there a tax write-off in Denmark for relocation expenses
like these? Its gotta cost a pretty penny to move the stuff.
Jeff
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