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Old 2008-10-20, 10:37 AM   #1
Nevermore
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Default Massive toy factory closure in China

http://news.yahoo.com/s/ap/20081019/...a_factory_woes

Holy shit.
 
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Old 2008-10-20, 11:29 AM   #2
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Just to make sure:

Based on the original story, I don't read anything about "the Chinese factory that manufactures Transformers toys for Hasbro is closing down, and now Hasbro can't have new toys produced anymore".

What I'm reading is a story about a factory that is going out of business because other companies are willing to manufacture toys for less.

So in other words, if Hasbro have actually used the factory to manufacture Transformers toys in the past (the article isn't clear about that - it just states that the factory themselves said they had worked for Hasbro last year), they may have moved to another factory since then, which is one of the REASONS this factory is closing down now.

Just the bad side of economics at work.
 
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Old 2008-10-20, 11:37 AM   #3
Blackjack
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Default Thank goodness!

I was shocked for a while there Nevermore... I thought the factories in China that manufactured TFs closed down... Okay heart you can start pumping blood again...
 
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Old 2008-10-20, 01:06 PM   #4
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I not really worried about Hasbro products at the moment. A whole bunch of people just lost their jobs.
 
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Old 2008-10-20, 01:08 PM   #5
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Looks to me that the companies move on to other factories because, as the article said, the labor cost grew dramatically at this particular factory plant. This isn't an example of an 'economic failure', but of a single factory pricing themselves out of business.
 
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Old 2008-10-20, 01:14 PM   #6
borg72
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creative destruction, innit?
 
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Old 2008-10-20, 03:43 PM   #7
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Quote:
Originally Posted by TFVanguard View Post
Looks to me that the companies move on to other factories because, as the article said, the labor cost grew dramatically at this particular factory plant. This isn't an example of an 'economic failure', but of a single factory pricing themselves out of business.
Way I read it, it says that the chinese government are stifling lower-tech, less profitable factories in favour of advanced industries after years of outrageous exploitation by western multinationals.

Like, why would they care about a mere couple thousand employees when there are a billion more? If you've got an oppressive regime where everyone's afraid to open their mouth then you can just put the cash in your pocket and walk away.

Quote:
The workers said the Hong Kong-based owner of the factory didn't warn them before the plant closed Wednesday.
http://www.youtube.com/watch?v=mcostesK0Ik
http://thetake.org/index.cfm?page_name=synopsis
 
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Old 2008-10-20, 03:48 PM   #8
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Quote:
Originally Posted by slartibartfast View Post
Way I read it, it says that the chinese government are stifling lower-tech, less profitable factories in favour of advanced industries after years of outrageous exploitation by western multinationals.
I think that's the focus of the government now, which would make some sense. China got their share of the money from whoring out their people, and now they're pushing forward with what they got.

Meanwhile, this factory had raised their labor costs so much (probably to compete with the new factories and manufacturing centers) that they priced themselves out of business for buyers.

Either way, it's as I predicted, the 'free ride' of cheap Chinese labor is starting to run out, and the United States and Europe no longer have a manufacturing base in which to compete. Expect MUCH higher prices for a lot of things very soon.
 
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Old 2008-10-20, 07:18 PM   #9
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It could very well be that manufacturing prices will increase, but companies like Hasbro have been very good at finding the next 3rd world nation to use.

Maybe Cambodia ar Colombia will be the next source of cheap labor, hard to say.

What's the most anyone here would pay for a Deluxe size Transformer? $15 (US)? $20?

There is a breaking point where parents are just going to see a $20 deluxe and say " Nope, not today..."
 
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Old 2008-10-20, 07:29 PM   #10
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paris.
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Quote:
Originally Posted by TFVanguard View Post
I think that's the focus of the government now, which would make some sense. China got their share of the money from whoring out their people, and now they're pushing forward with what they got.
Yeah, only that the poorer population isn't going anywhere but down. Byproducts of an economic boom while the big dogs grab as many scraps from what's left of the pie as they can, with willfull disregard for the people who made them rich in the first place.

Companies go out of business all the time, that's okay. Ignoring to pay the workers, not even bothering to tell them they're pulling out, that's not okay. People afraid to speak out and claim what is rightfully theirs, that's seriously not okay.

Quote:
Expect MUCH higher prices for a lot of things very soon.
- http://www.desktopfactory.com/

Quote:
Originally Posted by another tf fan View Post
hard to say.
- Aye.
 
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Old 2008-10-20, 08:39 PM   #11
Jaynz
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I've actually thought about getting a 3-D printer for custom minis... not really sure it's worth it just yet. The prints don't make good toys, though. They're very fragile.
 
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Old 2008-10-27, 11:13 PM   #12
Turbo 07
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I always figured I'd make a prototype with a 3D printer and then send that off somewhere to have molds made because, with the research I've done thus far, it seems that there are thousands of places to get a toy produced but nobody out there to help put together the CAD file they require as a starting point...
 
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