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 03:56:01 GMT
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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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