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Old 08-16-2014, 05:59 PM   #20
THD
Guru
 
City: Seattle
Country: US
Join Date: Apr 2012
Posts: 1,142
On China builds, I read an interesting article the other day in a trade pub I get. It seems that China is fairly rapidly losing the cost benefit it has had. Labor costs are rising. There are still substantial quality control and build consistency issue that increase warranty costs. Not to mention a lot of uncertainty in dealing with the bureaucratic structure in China. Add the transportation costs, and building in China has become much less attractive. It is interesting that the same issues arose with building in Taiwan. Taiwan addressed the issue by helping good yards develop the infrastructure, and then the yards, along with the government, worked hard to have a very high quality, well trained work force. China is not there yet.

More builders are going to be building back in the US in the upcoming years. One example, Gunboat just bought a yard in Wanchese, NC and is moving production from China back to the US. Among the issues mentioned above, they also discovered that 6 months after introducing their 60', built in China, the yard was offering knock offs for sale in Asia.
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