The article reads like a publicity blurb for “Manufacturing 101”, predictable and common place.

Steve Madden “Apple computers made in Singapore, by robots. Not touched by human hands.
Mitsubishi Air Conditioners made in Thailand, again not touched by human hands.
High Tech manufacturing plants, subsidised by Govt. Its called Industry Policy, we used to have one thats why, for now, we still make cars.”

All those computers and air conditioners – lots of robots and not many employees, in that scenario, you are right, wages, high or low, just don’t matter.

Both those places would rank as having better access to the worlds “market place”, Singapore is at the cross roads of Asia and Thailand is a lot more convenient than say Melbourne.

On the bright side,
Australia speaks English (well most of us anyway),
We have a stable history of Democratic government (great when assessing investment risk)
We do have some innovative individuals.

So we are left with what else?
Well maybe city rates and taxes and property rental costs.
However, we do also have some comparatively draconian EPA laws.

One problem I can identify with which dogs Australian Manufacturing; he historic notion, built up around protectionism, that the “market” is the “domestic market”.

Only by accepting the opportunity and challenge of a greater international market place, investing up to service that market, will any “manufacturing” industry. anywhere (not just Australia) have a future.

Richard42 “shipping entire factories to China”. I recall the brief history of Celltech factory in Coburg, designed to make mobile phones. After 18 months, it was shipped to Hong Kong, lock stock and barrel. The problem was not that it could be manned cheaper in Hong Kong but the regulatory environment and manufacturing scale for production was set to domestic expectations and not as part of an international vision. One thing with the multinational corporations, they do have international visions, rather than a “keep to my own backyard” culture. It is not JH fault and it would be worse with more restrictive employment conditions.

BD, I think you still don't get the idea of the global economy
and comparative advantage. The Chinese might be great at making
those things, bought by the millions, at zilch cost. So let them
make those, consumers benefit and they are clearly voting with
their wallets to buy them.

Industry simply has to adjust, make things where there is a short
run, not made by the millions. Specialised equipment, mining
equipment, niche industries etc.

Workers need to adjust too. They need to find work in industries
screaming for staff, where we are highly competitive. Mining, the
meat industry are just a couple that spring to mind, where there
is a huge shortage.

Manufacturing in fact is not such a large part of the economy,
services dominate.

Given your interest in religion and given the huge profitability
of the US bible belt preachers, where rattling the tin on tv
brings in hundreds of millions, perhaps you need a career change!

Forget manufacturing and launch a new services career in Aussie
bible belt TV tin rattling, our economy could benefit by multi
millions :) Much better that our true believers spend their
money here, rather then send it to those US evangelists!

As somebody pointed out, its all about attitude.

We've heard the "need to be clever" mantra for a long time.

What we really need is some decent politicians who will not sit on their hands as they currently do, but fight for Australia. Train Australians. Stop kowtowing to China. Stop acting like Third Worlders and digging holes all over the country for foreigners to make money out of our raw materials.

What happened to Barry Jones's clever country? We didn't (and don't) have any clever politicians to get it going, that's what!

Start putting the blame where it belongs - on dud, time-serving Australian politicians. Non-achievers and disinclined learners, the lot of them!

I WAS RIGHT and EVERYONE ELSE WAS WRONG!

Ok.. having said that and now that you are reading this:) to prove me wrong, my headline worked. My sign 'BLAME CHINA' was correct. (with explanation) My sign could just as well have said "BLAME GREEDY SEGMENTED INTERESTS IN AUSTRALIA" (Graziers and Mining) because politicians dance to their tune. (and donation)
PERICLES Taxing Chinese Slavery would be a temporary and targeted measure.
1/ TEMPORARY it would reduce as Chinese labor rates improved.
2/ TARGETED I can't see much point in taxing silly little things like hammers and spanners, but the government could identity particular industry segments LIKE RENEWABLE TECHNOLOGY and many others and use the targeted slavery disincentive to promote such valuable far sighted industries here.

You see.. YABBY..and others....mantra 'GO HI-TECH' has one fatal flaw..the CHINESE and INDIANS are ALSO doing that.

RUDD woffles as follows:

"I don't want to get to the stage where this country doesn't make anything any more,"

"But the ALP leader vowed no return to the risky "picking winners"
Then

Instead, a Rudd government wants large-scale offshore investment; to boost workforce skills; and to dramatically increase research, development and innovation.

"That's not picking a winner, (it's) facilitation with muscle," he said

COMMENT: err Kev.. actually no, its the same political BS which pretty much means "I want the power" and I'll spin it anyway which works.

PICKING "winners" is how every South East Asian country SUCCEEDED, just because we flopped once does not mean it's unworkable.
It flops because of 'mates rates' and industry/political buddies getting in the the action.

EVALUATION SHEET.
Howard ........ d-
Rudd........... d-
Greens......... Not relevant (led by a bloodsucking deviate)
Dems........... who ?
Family First... Unknown quantity.

P.S. He who calleth Pauline Hanson a 'bloodsucking_Racist' gets back what he gives.

Like it or not. WE HAVE TO ADJUST.

Globalism is a reality. Put quotas on the Chinese DVD players and computers and what happens? Lower income people can no longer afford these goodies. No government could last long under that scenario.

I deal with industrial electronic equipment. None of it comes from China. Nor does the automatic robot equipment which China buys from the west. A little of that is actually made in Australia and exported to Asia. Why? Because, I suspect, lower income and lower standards go hand in hand. When China can produce to western sophisitication and quality its workers will demand and get western wages.

The problem is how to manage the change. Some take the knocks adjust and bounce back. We expect all people to adjust individually when many can't. That is where goverments can take an initiative as well as developing conditions where employers can make the change and those who have can prosper.

LOGIC yes..adjust we must. Australias HUNDREDS OF THOUSANDS of unskilled or semi-skilled workers will have no problem 'adjusting'. With all their entrepreneurial skills they obtained in the factories where they mostly did a variety of repetitious work requiring a body rather than a brain.. yep..no problemo :)

But as the patron saint of the Media Pauline Hanson says 'as long as there is a level playing field'.... Logic.. if you are playing soccer and the ref is pre-disposed to penalty you twice as much as the other team, and you have had 4 players sent off for dubious reasons.. you don't adjust, you walk off the field or you THUMP the damn referee.

Here is why we have to decide 'MANUFACTURE or....TOURISM'

http://www.news.com.au/heraldsun/story/0,21985,20890429-5000117,00.html
CHINA GOES ON LONG R&D MARCH.
Which is code of course for 'we intend to take every industry we can from you'

Without a solid and innovative manufacturing base, what the heck would we have higher education in engineering for ? and to what would it be connected ?

I say.... grab the referee and politically knee kick him in the sternum repeatedly until he agrees to give equal treatment to both sides.

Nothing anyone has said has dissuaded me from the basic fact of CHINESE SLAVERY and our complicity in promoting it.
I think you said 'Chinese workers will demand more'..HAH ! That IS the problem mate.. they can't. They are more likely to be charged with Pharlungong-ism and carved up for organ donation.

Everyone ridiculed MALAYSIA when the pegged their currency to the US$ at a specific rate, during the Asian economic meltdown, but I respond "When were you last in 1st world KL International Airport" ?
(where you realized Tullamarine is THIRD WORLD)