Re: Is the Italian espresso machine industry the next loss to China?

On Sun, 14 May 2006 11:57:00 -0400, Jack Denver wrote:

http://www.nytimes.com/2006/05/14/world/europe/14italy.html?_r=1&oref=slogin


Italy's Once-Plucky Little Factories Now Complicate Its Battle With 'Made in
China'


"The biggest problem, however, is structural: Italy's thousands of
family-owned companies, the secret to its export success in the 70's and
80's, appear ill-suited to the demands of globalization. They make products
that can be easily replicated in Asia, using cheaper labor.

"Look at these valves," Mr. Bonomi said, plunking down a matched set. "This
one is mine; this one was made in China. It doesn't work as well as mine,
but it's close enough."

The Chinese one costs half as much."



It's not hard to imagine that the same could be said about espresso
machines, grinders and all the subcomponents inside the machines - heating
elements, pumps, solenoids, etc. Valves for that matter. I've been waiting
a few years now for this to happen - it hasn't proceeded very rapidly but
I'm still betting it will. And the Chinese domestic market is not an
insignificant market - Starbucks sees it as one of their main future growth
areas outside the US.



I'm not so convinced that complete commercial machines are just around the
corner. I may have been more inclined to believe that they were ready to
crank them out of the production lines before I started dealing with some
of the factories first hand. In a nutshell the experience has been a
nightmare. For my latest venture as little as possible is done via the
factories accross the border for the sole reason of my sanity. Quality is
fine it's all the deceit that I can't be doing with and I prefer to pay
extra rather than live on the edge.

The only way I could possibly see any progress is if the companies in Italy
set-up a plant - their own plant (would be a JV with a manuf. here) and
could monitor the entire process using their labour and their materials.

The quality is there, but even the blatently obvious things need explaining
and explaining again and again.

Paul

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