Originally posted by Kershaw
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There is no particularly special technology needed to make a chainsaw. It's really just plastic and metal parts screwed together with old-fashioned nuts and bolts. The Chinese already make chainsaws. But that hasn't stopped German power-tool manufacturer Stihl from selling its made-in-Germany chainsaws around the world, even though its top-end models are among the priciest on the market. In fact, 86% of the products Stihl makes in its high-cost German factories are exported. How Stihl manages that says a lot about the impact a revived German economy is having on Europe and the world — both good and bad.
The family-owned firm, based near Stuttgart in Germany's south, could shift more production to its lower-wage factories in China and Brazil, but management is committed to manufacturing many of its most advanced products at home. In contrast to the American habit of outsourcing as much as possible, about half the parts in a German-made chainsaw — from the chain to the crankshaft — are produced in Stihl factories, and many of them are made in Germany. And instead of laying off staff during the Great Recession, as so many U.S. firms did, Stihl locked in highly trained talent by offering full-time workers an employment guarantee until 2015. Stihl even added specialists to its product-development team during the downturn. The result is high-quality products that command price tags big enough — professional Stihl chainsaws cost as much as $2,300 in Germany — to make manufacturing profitable even with the nation's high wages. U.S. companies "don't try hard enough to keep production inside the country," says Stihl chairman Bertram Kandziora.
The family-owned firm, based near Stuttgart in Germany's south, could shift more production to its lower-wage factories in China and Brazil, but management is committed to manufacturing many of its most advanced products at home. In contrast to the American habit of outsourcing as much as possible, about half the parts in a German-made chainsaw — from the chain to the crankshaft — are produced in Stihl factories, and many of them are made in Germany. And instead of laying off staff during the Great Recession, as so many U.S. firms did, Stihl locked in highly trained talent by offering full-time workers an employment guarantee until 2015. Stihl even added specialists to its product-development team during the downturn. The result is high-quality products that command price tags big enough — professional Stihl chainsaws cost as much as $2,300 in Germany — to make manufacturing profitable even with the nation's high wages. U.S. companies "don't try hard enough to keep production inside the country," says Stihl chairman Bertram Kandziora.
The true irony is that companies and businesses and people don't necessary wait for permission to recover, that RWNJ are questioning what the administration may be doing even though they themselves want less government involvement and used to like "laissez-faire"... housing is recovering, people are being responsible but spending, and companies are hiring... although not "good enough", "fast enough" for some people. But compared to WHAT? Expecting to leap out of such a bad recession is ridiculous. We can do things to foster growth, but the most important thing is for Congress to stop standing in the way and allow businesses and people to know what the fiscal reality will be in 2013.
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