Let me ask you: Suppose you buy an apartment with an unobstructed sea view in Bonaire, and when you visit for the first time you discover that there is a pump room for the swimming pool between your apartment and the sea; do you then put the matter in the…
China remains a significant factor
It is recognised that the cost of wages in China is still relatively low, but on the rise. The Chinese currency is also becoming more expensive. In addition, companies are increasingly experiencing difficulties with logistics and the quality of the products made in China. Then the extra cost of transport no longer pays.
Menzing has observed something else.
Menzing recognises a trend that banks and journalists do not describe. For metal components in particular Menzing still sees the benefits of having these components made in China. We often see that the total production of the part can be achieved in China, for the same price as we pay for the material in Europe. This is not just because of the low cost of wages, but also because of the low price of metal on the Chinese market. We are pleased to take advantage of this, for the benefit of our customers. Quality is always a point for extra attention. Menzing rarely experiences problems with this, because it employs different quality control. It does not just inspect in-situ if a product falls within the limitations (good-bad) but observes if, within this bandwidth, there is a trend towards the boundaries of this bandwidth. This facilitates swifter action and guarantees quality.
In the newspapers we then read that the Chinese production often lands in Eastern Europe. Especially in the Czech Republic. The level of education there is high, the wages are reasonable, there is sufficient capacity and the cost of transport is acceptable. The latter is especially true. And we were aware of this at Menzing. Which is why Menzing has had an assembly facility near Prague for as long as anyone can remember, where we can manufacture very flexibly and where quality is never an issue. So the newspapers weren’t completely wrong.