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Report: HP Moves Part Of Notebook Production From China To Japan
CrunchGear ^ | June 17, 2011 | Serkan Toto

Posted on 06/18/2011 3:57:21 PM PDT by BfloGuy

You don’t hear news like this too often these days, but according to Japanese business daily The Nikkei, HP is planning to shift part of its notebook production from China to Japan in the next few months. The Californian company plans to eventually manufacture all computers for sale in Japan in factories in Akishima near Tokyo.

For that, HP plans to hire 50% more workers in Akishima, boosting the number of employees there to 450. According to the Nikkei, labor costs in Japan are about four times higher than in China. But with this move, HP apparently wants to increase efficiency, be closer to the market, stand out with a “made-in-Japan” moniker, and push down delivery times especially to Japanese business customers.

(Excerpt) Read more at crunchgear.com ...


TOPICS: Business/Economy; Japan
KEYWORDS: china; japan
labor costs in Japan are about four times higher than in China

Ah, but labor costs are just one of many production costs. And there's also the fact that Japan's central bank has virtually eliminated inflation -- the Yen's purchasing power has been stable for years.

This provides a good environment in which to do business and allows consumers to benefit from dropping prices due to productivity improvements.

The conventional wisdom these days is that Japan is in a long, slow decline. The conventional wisdom is wrong. Their GDP may be stagnant, but GDP growth is dependent on an inflating currency.

The Japanese aren't stupid. They continue to produce more goods with fewer people. Capital continues to be invested, living standards are rising and their export machine just keeps cranking.

Don't believe the Keynesian-trained ignoramuses who pontificate about Japan's lost-decades. They don't have a clue what they're talking about.

1 posted on 06/18/2011 3:57:27 PM PDT by BfloGuy
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To: BfloGuy
I meant to say that the Yen's purchasing power has been increasing for years. The Keynesian's call that deflation, but the Central Bank isn't decreasing the money supply, it's just not expanding it.

Japanese consumers enjoy the ability to purchase more each year for the same amount of Yen. This is supposedly a bad thing; I can't, for the life of me, see why.

2 posted on 06/18/2011 3:59:52 PM PDT by BfloGuy (Money, like chocolate on a hot oven, was melting in the pockets of the people.)
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To: BfloGuy

Good maybe HP quality will go up. I know the last two notebooks I bought from them were junk...


3 posted on 06/18/2011 4:01:22 PM PDT by ColdSteelTalon (Light is fading to shadow, and casting its shroud over all we have known...)
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To: BfloGuy

Amazing, isn’t it? Only two months ago, FR’s doomsday chorus all but predicted the end for Japan. Luckily, Japan was having none of it, and got to work instead of wringing their hands and posting pictures of “black swans” and crying “the end is nigh!”


4 posted on 06/18/2011 4:05:10 PM PDT by Larry Lucido
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To: BfloGuy

You are correct and people are starting to see that China can’t keep the quality aspect up. Consumers choose not only on price but on quality.

China still means cheap build quality
Japan means excellent build quality

HP should bring home the bacon

USA non-union shop means excellent build quality also, and lower shipping costs for US Customers. Since they are in HOUSTON, they could have build right in their back yard and done very well with Tax and quality.


5 posted on 06/18/2011 4:16:18 PM PDT by King_Corey (www.kingcorey.com)
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To: BfloGuy

why don’t they move it to some rural u.s. location?


6 posted on 06/18/2011 4:17:47 PM PDT by ken21 (liberal + rino progressive media hate palin, bachman, cain...)
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To: Larry Lucido
The end of Japan is coming due an imploding fertility rate.

HP Japan hiring 50% more workers means nothing to Japan's survival.

7 posted on 06/18/2011 4:19:13 PM PDT by Reaganez
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To: Reaganez

You may have a point about the fertility rate. But do present trends always predict future trends?

In any case, my point was about productivity and industriousness. The Japanese may need to “get busy” in other ways, too. :-)


8 posted on 06/18/2011 4:22:40 PM PDT by Larry Lucido
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To: BfloGuy

The “Made in Japan” label is very powerful here. In some cases, people are willing to pay up to twice to get a Japanese-made product.

While part of the reason is superior workmanship, another reason is simple patriotism and a feeling that Japan has been abused by China in resent years.


9 posted on 06/18/2011 4:23:09 PM PDT by Ronin ("A society of sheep must in time beget a government of wolves" -- Bertrand de Jouve)
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To: Ronin

Recent... Ugh, no posting before coffee...


10 posted on 06/18/2011 4:24:39 PM PDT by Ronin ("A society of sheep must in time beget a government of wolves" -- Bertrand de Jouve)
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To: BfloGuy

My Touchsmart 300 was “ assembled “ in Tokyo , but virtually all the parts were made in China as far as I know . Lots of trouble with it during the first year : had to send it back for repair 3 times ( they would NOT replace it despite major hardware defects ) . I don’t care where they make their computers ; I’d never buy another HP . And I live in Japan !


11 posted on 06/18/2011 4:25:10 PM PDT by sushiman
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To: ken21

“why don’t they move it to some rural u.s. location?”

I second that motion in a big way.


12 posted on 06/18/2011 4:25:33 PM PDT by HereInTheHeartland (2008 was about words; 2012 will be about numbers)
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To: Larry Lucido

No,but they are the best predictor.

If we can’t use current trends then there is no point in any kind of speculation.

FR can only discuss the present and the past.

How interesting would that be?


13 posted on 06/18/2011 4:27:48 PM PDT by Reaganez
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To: BfloGuy

But will they be radioactive?


14 posted on 06/18/2011 4:32:33 PM PDT by MissMack99 (BO Stinks!)
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To: HereInTheHeartland

“why don’t they move it to some rural u.s. location?”

-

Because we do not demand it.

We should. It is the only way we will bring our jobs back.

Raise cane. And do not make it painless for companies to outsource.

“Free trade” is not our friend.


15 posted on 06/18/2011 4:40:14 PM PDT by Cringing Negativism Network (BUY AMERICAN. The job you save will be your son's, or your daughter's)
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To: Reaganez

But the fallacy of predicting future trends based on snapshot trends has been illustrated before. I think it was called the Malthusian catastrophe or something like that. I’ll have to look it up, but the long and short of it is that continued indefinite geometric population growth was as unlikely in the 1800s as would be indefinite geometric population decline now, notwithstanding current trends.

Of course, I could be wrong.


16 posted on 06/18/2011 4:43:50 PM PDT by Larry Lucido
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To: ColdSteelTalon

i agree.....


17 posted on 06/18/2011 4:47:39 PM PDT by Sacajaweau
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To: Larry Lucido
John Maltuhus had a fundamental misunderstanding of economics not of statistics. Supply was largely determined by demand. Population determined agricultural methods not the reverse.

The Data for declining Japanese fertility rates is more than a snapshot. It has been decades. Plus this is not an economic problem or a resource problem. It is a sociological/political one.

Japan is pretty much out of carrots to increase fertility rates.

It needs to use sticks.

That would need a break with its current post-war liberal-democratic traditions.

Of course it could enter a brave new world and the central government can manufacture people in the future I suppose. I would argue that “Japan” would be finished and something new has arisen.

18 posted on 06/18/2011 5:03:45 PM PDT by Reaganez
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To: HereInTheHeartland; Cringing Negativism Network; Ken
“why don’t they move it to some rural u.s. location?”

Due to the Obama regime's business hostile policies, Obamacare mandates and union support, no business can possibly create new jobs here at home without suffering for it.

19 posted on 06/18/2011 5:15:02 PM PDT by Caipirabob ( Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Caipirabob

Obama’s administration is already more than half over.

It is time to start planning for when the GOP takes over.

We’ll need jobs.


20 posted on 06/18/2011 5:16:50 PM PDT by Cringing Negativism Network (BUY AMERICAN. The job you save will be your son's, or your daughter's)
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To: BfloGuy

As someone who translates the internal business reports of various Japanese firms, China is not as great of an investment as people think. My clients are leaving China for Thailand or leaving to central China.

Productivity of all but the most basic materials is low, wages are rising dramatically on the coast though production is mediocre, while the wages of central China are low and productivity is abysmal.

Japanese workers do not work as proxy slaves as the Chinese do. Add to the fact that China is becoming more and more unstable. Korea and Japan are expensive places to put plants, but productivity is way better.


21 posted on 06/18/2011 5:30:03 PM PDT by struggle
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To: ColdSteelTalon

“Good maybe HP quality will go up. I know the last two notebooks I bought from them were junk...”

That’s because they are junk. HP laptops are THE worst in terms of build quality, reliability and longevity. Except for their old Omnibook series, they always have been and still are.

Right now, in the consumer class, I’ve been recommending Dell laptops first and then Toshiba. Essentially the special models made for BestBuy, et. al.

Amongst the business class laptops, the Panasonic Toughbooks are head and shoulders above the best, and Panasonics have ALWAYS been made in Japan, though service and support is all in the good ol’ USA, with all warranties runnning for three years.

Panasonic is also just now releasing a new model, the CF-53, which moves them a little more into the mainstream now in terms of features and weight. Heretofore, the Toughbook line consisted of tank-like models and those little slimmed down skinny jobs that cost a fortune.


22 posted on 06/18/2011 5:30:20 PM PDT by catnipman (Cat Nipman: Made from the right stuff!)
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To: BfloGuy
Made in Japan?


23 posted on 06/18/2011 5:38:10 PM PDT by OCC
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To: ken21

Works for me. You would be surpised to know just how many companies are currently doing just that out here in the “boonies”. We have a loyal non-union workforce, and can always use the work.


24 posted on 06/18/2011 5:54:58 PM PDT by factoryrat
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To: catnipman

I am glad to hear another person also say that HP laptops are junk. Their PCs are no better. When people call me to fix their dead technology toys, a lot of it is HP.


25 posted on 06/18/2011 6:03:48 PM PDT by wally_bert (It's sheer elegance in its simplicity! - The Middleman)
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To: Cringing Negativism Network

You’ve reminded me of changing my tag line,

The Economic Boom Heard Around The World => TEA Party 2012


26 posted on 06/18/2011 6:12:56 PM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: Larry Lucido
doomsday chorus all but predicted the end for Japan...

Japan will be fine.


27 posted on 06/18/2011 6:14:20 PM PDT by C210N (0bama, Making the US safe for Global Marxism)
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To: ColdSteelTalon

HP’s consumer line is lower quality, just like Dell/Toshiba/Lenova/etc. Their business-lines as well as their Envy lines are quite good.

the new Envy’s match (in some cases,) the Macbook pro line but you’ll pay for it.

I suspect this move is for those higher end lines.


28 posted on 06/18/2011 6:15:33 PM PDT by ATLDiver
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To: ColdSteelTalon

>.Good maybe HP quality will go up. I know the last two notebooks I bought from them were junk...<

Yup. JUNK. Will NEVER buy Hp ever. Their customer service is the worst, even their tIER 2 CS in Vancouver, canada. (No wonder they riot so much).

If the production costs are higher, they will pass on the “savings” to their customers so their cheapest crappy laptops will probably sell for $500 more. Oh goody. (s/)


29 posted on 06/18/2011 6:19:04 PM PDT by max americana (.)
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To: MissMack99

The keyboards will glow in the dark. Don’t you like that? I had to pay extra for it last year. Now free.


30 posted on 06/18/2011 6:21:53 PM PDT by Revolting cat! (Let us prey!)
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To: BfloGuy

Great news!! Hope this trend to move away from China-made junk continues!


31 posted on 06/18/2011 6:24:21 PM PDT by nicmarlo
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To: ken21

Because corporations are in business to make money. Taking a hit on higher pay to the Japanese will produce better quality products in the long run (albeit slightly irradiated).

Higher taxes are coming to US businesses and the rule of law has pretty broken down so it is not a climate conducive to business.


32 posted on 06/18/2011 7:01:36 PM PDT by Razzz42
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To: wally_bert

I’ve had good luck with HP Desktops. Laptops, not so much.


33 posted on 06/18/2011 7:10:37 PM PDT by MarkeyD (Obama is a victim of Affirmative Action)
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To: ken21

because HP forgot who they came to the with.


34 posted on 06/18/2011 7:32:15 PM PDT by magua
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To: wally_bert

“When people call me to fix their dead technology toys, a lot of it is HP.”

Ditto. And frequently they’re so broken they’re not cost-effective to repair so I have to tell people they’d be better off to buy a new laptop.


35 posted on 06/18/2011 7:40:12 PM PDT by catnipman (Cat Nipman: Made from the right stuff!)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks BfloGuy.
Take a look at them moccasins. What kind of skins is them? What's that writing mean? Nikkei...what is that?

36 posted on 06/18/2011 8:30:33 PM PDT by SunkenCiv (Thanks Cincinna for this link -- http://www.friendsofitamar.org)
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China, Japan, and the UK: the United States’ greatest three debt holders, correct?


37 posted on 06/18/2011 8:34:37 PM PDT by Gene Eric (*** Jesus ***)
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To: Larry Lucido
The Japanese need the time to get busy. Their work culture that demands that all the employees stay until the ‘boss’ leaves... only to be required to then go to a bar and get ‘s41t-faced’ in the name of workcenter ‘bonding’. That really leaves very little time for the average Japanese salaryman to actual get busy.

Or for that matter, look for a nice lady to settle down and get busy with.

Or to help raise any children, too.

38 posted on 06/18/2011 9:27:12 PM PDT by gogogodzilla (Live free or die!)
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To: gogogodzilla

How did there ever get to be 100,000,000 Japanese? Someone was doing some fooling around somewhere.


39 posted on 06/18/2011 10:31:42 PM PDT by Larry Lucido
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To: Larry Lucido

Correction, 127 million.


40 posted on 06/18/2011 10:34:03 PM PDT by Larry Lucido
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To: BfloGuy

Isn’t HP now Lenovo...the Chinese company that bought them out?


41 posted on 06/19/2011 12:07:33 AM PDT by Tainan (Cogito Ergo Conservitus.)
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To: Ronin
Ditto here on Taiwan re:"Made in Japan" label.

I recently bought my son a new wristwatch. At the local watch shop they had Seikos from China and Seilkos from Japan. They made it very clear that they preferred selling the ones from Japan. This is a very reputable shop that has a lot of high-end brands for their offerings.
I see this same preference for many other items here - Quality from Japan is SOP over mainland China.
42 posted on 06/19/2011 12:14:34 AM PDT by Tainan (Cogito Ergo Conservitus.)
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To: BfloGuy
I'll answer my own question - NO...

"Lenovo acquired the former IBM PC Company Division, which marketed the ThinkPad line of notebook PCs, in 2005 for approximately $1.75 billion."

They bought the PC division of IBM.

43 posted on 06/19/2011 12:17:51 AM PDT by Tainan (Cogito Ergo Conservitus.)
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To: catnipman

There is a reason that HP home stuff is generally a tad lower than most of the other brands.


44 posted on 06/19/2011 4:30:33 AM PDT by wally_bert (It's sheer elegance in its simplicity! - The Middleman)
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To: wally_bert

“There is a reason that HP home stuff is generally a tad lower than most of the other brands.”

OK. I’ll bite. And that reason is?


45 posted on 06/19/2011 6:34:48 AM PDT by catnipman (Cat Nipman: Made from the right stuff!)
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