The Case Against Chinese Manufacturing

The New Zealand Herald has reported that Tru-Test, a New Zealand company which manufactures equipment for the agri industry, has decided against outsourcing to China in favour of local manufacturing.  Tru-Test cited local competitive advantages such as simpler logistics, optimal inventory management and better quality control.  To achieve a competitive position Tru-Test appears to have employed lean manufacturing principles to drive out waste and inefficiency.  Reading between the lines the company appears to have a good culture and support of staff.

Tru-Test appears to be a good example of what can be achieved in New Zealand in certain industries.

The only other comment we would make is that lean manufacturing must be aligned with the correct financial philosophy and financial information.  We’ve seen some excellent examples of lean manufacturing in New Zealand but equally we’ve seen some poor examples where a few select questions have pretty much revealed that the lean philosophy has added nothing tangible to the bottom line.