Message from discussion Typical decent Al Bicycle diamond frame costs $8 to make in Taiwan

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NNTP-Posting-Date: Tue, 06 Dec 2005 00:03:45 -0600
Subject: Re: Typical decent Al Bicycle diamond frame costs $8 to make in Taiwan
Date: Tue, 06 Dec 2005 01:03:46 -0500
From: Luke <lucasirag...@rogers.com>
Newsgroups: rec.bicycles.tech
Message-ID: <061220050103469593%lucasiragusa@rogers.com>
References: <051220051933154076%lucasiragusa@rogers.com> <43950ba2$0$38660$742ec2ed@news.sonic.net>
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In article <43950ba2$0$38660$742ec...@news.sonic.net>, SMS
<scharf.ste...@geemail.com> wrote:

> Luke wrote:
> > This from Sheldon Brown's Bentride Podcast (@ 8:50). No wonder
> > manufacturing is a declining sector in North America! This can't be the
> > total cost of production (stock and labor); does the figure apply to
> > labor cost only?
> 
> It's quite possible that $8 is the cost of an aluminum frame. Aluminum 
> is extremely inexpensive (why do you think the bicycle manufacturers are 
> using it?!). Look how cosmetically poor the welds are--no effort is put 
> into filing them. Welding seven or eight pieces of aluminum tubing 
> together is not a long or expensive process.

Still, to put it in perspective, the cost is only a couple of dollars
more than the price of a typical fast food meal. Unfinished welds
aside, that's an incredible achievement - if achievement is the right
word. It's an astounding fact. I wonder what the cost of production
would be on this side of the Pacific for a frame of comparable quality.

With domestic industry under siege by the Asian manufacturing
juggernaut on so many fronts, it's obvious the scope and degree of
economic advantage is pervasive.

> 
> I think the real question is what is the ROI, including the cost of the 
> equipment and factory.

Well, generally speaking, it's enough to flood the region (mainland
China, specifically) with a torrent of FDI; and capital, supposedly,
always seeks the highest rate of return. How long can it continue?

Luke