Seawind Moving Most Production to Vietnam

[Barra]

As I understand it it is already happening - not sure how long since it started - sometime mid last year is my guess but ring em they are pretty open about it, just not in an official sense it seems.

[downunder]

Originally Posted by Ozbullwinkle

Barra, have you heard if they have started producing Seawinds in Vietnam or are they just gearing up for it? Any idea when it will start if it hasn't already? Having a Seawind with a Made in Vietnam plate just doesn't have the same ring about it does it? It may keep the price up of 2nd hand Aussie built ones though.

Where is Factor when you need him ??

[travler37]

Originally Posted by Mick C

lived in Wollongong for a while and am familiar with the factory location. To some degree they have been "built out" so to speak. a new northern distributor created a change in access...not all bad. A few years back they build a new shed to produce the 1250 right next door to the existing factory. I had heard that they were moving to Nowra which did not suprise me, good space and access to a skilled workforce ex Navy station there.
This Vietnam story initially surprised me. However seeing the high Aud and Carbon Tax uncertainty has basically sent the Australian Steel industry down the tube then I think other manufacturing businesses like Seaind will have to look at alternate manufacturing bases with lower fixed costs and lower O/H. Thats globalisation at work for better or worse.

The owner/MD is a smart cookie and astute so no doubt there were compelling busines cases to the move. Wish them all the best of luck in this rather torrid time business wise in Australia.

Mick

PS...worked in Vietnam with an Australian company expanding into Asia...a nodding head does not mean "I understand"...it means you are talking...need a lot of supervision and cultural sensitivity...

And i was realy buying the global warming thing........
Untill the C tax then it turned into another stuff this down your gullet...
And there is a enviromental protection angency in th e V?
Didnt think so.Sails on and shakes his head that you let them do this to your business......Or your life
Mt thoughts
Mark

[Ozbullwinkle]

Originally Posted by maxingout

Globalization is another word for exploitation of cheap labor to maintain or increase profits. It results in short term profits, but long term it is stealing from Peter to pay Paul. When you send all the Ozzie jobs overseas, then the Ozzies won't have the jobs and the cash to buy the sailboats. It is non-sustainable long term.

I get discouraged when I walk into a store, and the majority of the products are from China. I want to support the jobs in my own country, but it gets harder with each passing year.

This problem will continue as long as governments pursue policies that make manufacuting at home more expensive, and they favor those who move the jobs overseas.

Couldn't agree more. I've worked for multi national companies including a 12 month stint in Chicago which I loved. All of these companies spruiked the same mantra "our most important asset is our staff" yeah right - now been retrenched 3 times when my job got outsourced overseas. One company even flew in staff from the Asian country which had taken our jobs for me and my team to train them - wow that was inspiring! I think unions have a lot to answer for though they might get better conditions for the worker in the short term but they end up breaking the employers back then they say enough is enough and go offshore. Here is an example - Thursday this week is Australia Day which is a Public Holiday which is a great day with lots of activities and celebrations. But Friday has also been gazetted as a Public Holiday so that everyone gets a long weekend. Yeah the general public like the long weekend but there are consequences. Another hit on the employer - no wonder they go offshore where they don't have to absorb this extra expense and Aussies lose their jobs.

[Ozbullwinkle]

Originally Posted by downunder

Where is Factor when you need him ??

Yeah I have been thinking exactly the same thing. But as a Seawind Agent maybe this topic is too close to the bone and his lips are sealed. I'd love to hear what he had to say.

I went onto the Seawind website - Contact Us tab and intended to ask them about the Vietnam prroduction but they wanted so many details etc that I didn't bother.

[Barra]

Spot on Traveller - unless the rest of the world moves to deal with carbon pollution all we arevdoing is taking well run efficient businesses and forcing them to set up in countries that dont give a rats arse about pollution

end result is pollution has actually GONE UP!

But at least the greens here in oz and Al Gore in the states can feel better about themselves

in the words of Southpark

MAN BEAR PIG

and no this is not off topic!

[downunder]

Originally Posted by Ozbullwinkle

One company even flew in staff from the Asian country which had taken our jobs for me and my team to train them - wow that was inspiring!

Think was something similar with bank staff retrenchments announced on weekend. staff are expected to train the Indians who will replace them. Smart stuff.

[cat man do]

Originally Posted by Barra

At some point there will be a decent price drop

Have you got any actual examples of other marine manufacturer's that have passed on their savings?

[Barra]

market these days will dictate the price drop catmando - ie i dont think a cost plus approach works in a global recession - its more set price to get away x units to keep in business.

unless aussie miners develop a taste for cats its inevitable mate!

[Ozbullwinkle]

Originally Posted by downunder

Think was something similar with bank staff retrenchments announced on weekend. staff are expected to train the Indians who will replace them. Smart stuff.

Yep spot on - we had to train Malaysians. The funny thing was that after they had trained all of them and set it all up 2 years later they outsorced it again to China as they could do it cheaper than the Malaysians. The end result customers had to deal with staff on the phone with broken English that were also poor in comprehension and the company thought this was good customer service.

[downunder]

Originally Posted by cat man do

Have you got any actual examples of other marine manufacturer's that have passed on their savings?

I would doubt there will be any short term price reduction other than their recent ones however once they cover cost of setup the market may (may) dictate it. Against that one could hardly say Corsair are cheap vessels because they are produced in a low cost country.

In that the last Australian Multihull world Jan/Feb 2011 just out does not mention production overseas despite the Seawind 10 page advertorial they are slowing release this info if they can.

[webejammin]

You Australian guys are sounding like Amaricans talking about there jobs leaving to other countries when everyone is buying from Wallmart stores where less than 10% is American made stuff and 90% japan and china products. It takes folks buying there own countrys goods to keep jobs going something the japineese and chineese are just starting to do like the industrial countries did a hundred years ago with wages about the same.
As far as Seawind moving closer to the Pacific NW I hope to see more catamarans on the west coast, the first catamaran we sailed was a 1000XL Seawind and still like the boat.
I like USA made products and that's one reason I bought a Gemini made in Annapolis MD and now there made in Florida who knows where they will move the molds or just the CAD (computer aided design) files which is the field I used to work in.

[cat man do]

Originally Posted by downunder

Think was something similar with bank staff retrenchments announced on weekend. staff are expected to train the Indians who will replace them. Smart stuff.

And the banks won't pass on savings either even though their costs have reduced due to overseas call centres.

Originally Posted by downunder

one could hardly say Corsair are cheap vessels because they are produced in a low cost country.

Exactly

Seawind will only need to sell a fraction of the boats they need to to remain profitable now, as their cost will have reduced considerably.

They dont need more sales, they just need less overheads, so I doubt we will see any worthwhile price drops passed on, ever.

10 staff in Oz coast around $60k each = $600,000
Same in HCMC will cost around $2.4k = $26,000

[downunder]

In Aust the cost of labour will be around 50% of sale price.

If that can be reduced to 15% or less makes a big difference to staying in business.

I imagine those numbers although guestimates are in the ballpark.

Will make the difference and allow Seawind to survine in long term.

[downunder]

Originally Posted by cat man do

And the banks won't pass on savings either even though their costs have reduced due to overseas call centres.


Exactly

Seawind will only need to sell a fraction of the boats they need to to remain profitable now, as their cost will have reduced considerably.

They dont need more sales, they just need less overheads, so I doubt we will see any worthwhile price drops passed on, ever.

10 staff in Oz coast around $60k each = $600,000
Same in HCMC will cost around $2.4k = $26,000

This difference is dramatic and exactly why.