Enlightenment on global manufacturing: outsourcing offshoring

Wheels of Happiness

Rizal Philippines
February 14, 2018

                                                           Kenda bike tire factory in Taiwan

As this post reads some of comments as to whether made in Taiwan bikes/parts are fake or not, certain lack of understanding emerges from some quarters.  (Nakakahiya especially Taiwan hosts many of highly paid Filipino OFWs) Taiwan manufacturing is growing leaps and bounds due to their manufacturing prowess, quality build and customer satisfaction.  For carbon and other bike manufacturing the country has become a center with state of art facilities for CNC and carbon fiber manufacturing.   European and North American manufacturers have recognized this that they unashamedly have the frames made in Taiwan and China.  Now some Taiwan manufacturers have outsourced established their plants in Mainland China where labor is cheaper

In investments this flows from where returns are highest, or costs are lower.  Thus Western countries outsources its manufacturing elsewhere:  Asia and China where labor and other costs are lower. Thus we have BPO where labor costs are lower by a factor of 5 up to 10.  Some name brands even in UK and Italy have Asian suppliers.  Please take note that biggest supplier of quality carbon fiber, Toray is Mitsubishi, based in Asia.  So it is cheaper really to outsource in Asia:  from raw material and manufacturing

This is not a new phenomenon.  GM and Boeing outsource some of their parts to Korea, Japan.  Some aerospace firms airplane company I am surprised have suppliers from Laguna.  And that means we should not belittle products and parts outsourced from Taiwan. Apple and Samson are squabbling over intellectual property rights, because Apple outsourced from Samsung

I had a friend who bought an Alum Ridley Fenix frame.  It was alleged that the frame was pre ordered by an outlet in Eastwood from Cebu.  It had a sticker that says made in China (not Taiwan) Same as any other quality frame I saw.  It weighed in at 1.6 kg

OEM

 Some companies in US and Europe, and online shopping companies are marketing companies just like supermarkets that get many products elsewhere.  Nike for instance does not a have shoe plant;  there are subcontractors that just put their label on their shoes . The same goes true for Dell:  its computers being ordered online are assembled elsewhere in the world:  Winstron does the manufacturing and FEDEX did the delivery at Subic.  Dell computers are sturdy and reliable.  Do you doubt its quality though it was made in the Phil.

Those who manufacture for a brander in US or Europe are called OEM: Orginal Equipment Manufacturer.  They assemble genuine products following the branders specs and material requirements.  The brander simply puts their decals and brochure in boxes that came from Taiwan or  China.

China and Taiwan compete in global market. They cant afford to fail in this market by coming out with low quality or shoddy products.

Giant and SRAM factories are based in Taiwan;  so fake ang products nila just because my label ng Taiwan. Colonial mentality has not left many of the heads of our kababayan!

So are Taiwan made CF fake?  This post would like to repeat that Taiwan has superior technology in CNC (machining of bike parts) and carbon fiber.

Taiwan a center for bike bike parts manufacturing many focus on high end market.

"God  created the world in 6 days,  and afterwards, everything else was made in China"

                                                    SRAM Truvative factory in Taiwan

From bike rumor: Visit to SRAM factory located in rural Taiwan

                                                     Mga fake ba Truvativ at SRAM products?