Slashdot Mirror
GoPro To Move US-Bound Camera Production Out of China (reuters.com)
In an effort to counter the potential impact from new tariffs, GoPro is moving most of its U.S.-bound camera production out of China by the summer of 2019. The company said international-bound camera production will remain in China. Reuters reports: The company had previously said it was being "very proactive" about the situation regarding tariffs as U.S. and China ramped up its bitter trade war, in which both nations have imposed tariffs on hundreds of billions of dollars of each other's imports. "It's important to note that we own our own production equipment while our manufacturing partner provides the facilities, so we expect to make this move at a relatively low cost," said Chief Financial Officer Brian McGee. In the company's earnings call in November, GoPro said it had the option to move U.S.-bound production out of China in the first half of 2019, if necessary.
They'll move it straight to Mexico - the labor's still cheap enough there and, because of our shiny, brand new "trade agreement" with Mexico, there are no nasty Trump tariffs to contend with there..#MAGA!
That is all.
The GoPro press release is
https://investor.gopro.com/pre...
The link in TFS is for teh old version story
I am Slashdot. Are you Slashdot as well?
If it hasn't been updated in the summary yet, here's the correct link to the article.
... are so thin that they can't afford the tariff.
I have two major thoughts on this announcement:
1.) When (not if) the tariffs are rolled back, GoPro will regret the shortsightedness.
2.) I don't have the chops to tell GoPro what its business model should be.
It little behooves the best of us to comment on the rest of us.
The company said international-bound camera production will remain in China.
The message to legislators around the world is clear. I wonder if other countries will follow US example.
I'm sure this will be a very unpopular comment on the heavily left-slanted Slashdot. But the tariffs are working. I build custom manufacturing hardware (in the US). While my component costs have gone up (since most ICs come from Asia) I've noticed a boom in business.
Trump just signed NAFTA 1.2. It's just like NAFTA except he snuck a few provisions from the TPP in there (notably the one that lets companies sue governments for lost profits, which should have be a big no-no among his America First base...).
At any rate even if they bought a factory here I doubt we'd see jobs. There's always automation. Ever see the Steam controller get made? One guy dumps parts manufactured in China into a machine and out comes controllers.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
Never RTFA finally pays off.
“Common sense is not so common.” — Voltaire
Notice they are saying "out of China", not "to the US". They will most likely move it to India or Vietnam or Mexico, or somewhere else cheap.
Are you serious? I actually can't tell.
Production will move at most 800km. Components will be sourced en-mass from china, shipped to vietnam and then assembled into the final product with a "made in vietnam" sticker.
A new low for editorial proofreading.
When all you have is a hammer, every problem starts to look like a thumb.
It seems like you got a little confused there, or whoever told you was confused. That provision was *removed*. It was in NAFTA 1.0, now it's gone.
Canada wanted keep it, which is weird because:
https://www.cbc.ca/news/politi...
It was removed in the Trump deal except for one special case. Every so often Mexico makes efforts to nationality their oil industry, with the government taking refineries and other infrastructure from the private companies that built them. If Mexico wants to take American-owned oil facilities, the companies can get reimbursed under the chapter 11 process. It's been removed except for oil facilities in Mexico only.
Whichever source of news / comedian told you the exact opposite, I'd be suspicious of them now. Apparently they are either hard to understand, or pulling your leg.
What percentage of their product is shipped to the US? 10%, 50%? That not destined from the US will still be made in China. Didn't see any thing about manufacturing in the US.
In a time of universal deceit, telling the truth is a revolutionary act. George Orwell
Well to your point: you are building custom equipment, not commodity or mass production equipment. The market is there for custom equipment that has support within the same country. Its not like you want to call up someone in China (let alone have someone fly out from China) if you need tech support or repairs.
On the other hand, all of the commodity and mass production equipment is made overseas (China, Vietnam, India, Take your pick of a SE Asian country). You even admit to ordering commodity overseas parts. I assume you can't even get US made commodity parts that are cost competitive with overseas manufacturers.
So the tariffs are a mixed bag at best. Right now, any factory that produces mass market commodity goods are shifting production out of China and into another SE Asian country. The production for those goods are not shifting back to the US. Those factories have to be cost competitive after the tariffs are rolled back and some new trade agreement is put in place. Once the tariffs are rolled back, any commodity product factory in the US will get ground under.
So yes, your production is at capacity. But the moment someone figures out how to make a mass market version of what you are producing, expect it to start being produced in China or Vietnam or Korea or India.
Architectural plans are like computer source code with a couple of differences: You only compile once.
Exactly. GoPro is not the first. Most who are moving are moving to places like Cambodia and Vietnam. Mexico is nowhere near as cheap or reliable. They will likely look to improve their margins in the move versus what they had in China pre-tariff. Why wouldn't they?
The affect of all this will be to spread the wealth and thus bring other countries up to the point of us viewing them as a problem. We simply can't stand other countries using our same tactics.
But, it's too late. Once the countries cross a certain nutritional divide for enough years and no longer has their intelligence hampered by malnutrition in their early years, they will inevitably join the industrial world. Many our lining up to do so now as a result of nutritional improvements in previous decades.
Didn't see anything about this from the link in the summary,
"Verizon says to shed 10,400 jobs by mid next year"
so I guess that sucks but it does not verify what the summary claims.
Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.