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Business/Finance See other Business/Finance Articles Title: Excerpt from "Why Swatch Matters", the truth about global outsourcing This article isn't online, so I've transcribed it for your edification. This was in response to a question about a new watch and the the Swiss watch industry that Swatch Group (Breguet, Harry Winston, Omega, Tiffany & Co., Longines, Tissot, Hamilton, Swatch, etc.) CEO Nick Hayek Jr. expounded upon: WT: So that's the message of Sistem 51? (a new watch and mfg system) NH: It's a message to the industry, but not just the watch industry. We have a real problem in Europe and in the United States. All these countries need to go back not just to investing in research and development. Today most companies take the easy way that pleases the short-term thinking of the stock market, outsourcing to foreign countries where the salaries are lower. But in reality they lose their industrial base. R&D must not be separated from production. They need to be in constant interaction. All these countries must start mass production at home again, in their own country. Why are we able to make a mechanical watch in Switzerland? Swiss-made is a value for the consumer. Especially in watchmaking, and not just in the luxury segment. In the past, "made in America" was also a value in specific product categories, as it was or is for products "made in Italy" and "made in France". But don't cheat the consumer. You should try to make as much as you can in your country. Because this will force you to innovate. And it will create jobs. And I see it everywhere: people with the argument to go global. They think they can de-localize the companies without any problems. You put the headquarters where the taxes are the lowest and you put the factories where the work costs the least. This is short-term thinking and not true. We should really take the strength of a country and say, "OK, how can we produce a product in this country?" And that's what we proved again with Sistem 51. WT: So the point is keeping.... NH: Keep your know-how in the country. Not just research and development, but also how to make a finished product. Because with prototypes alone your are not making a living. Post Comment Private Reply Ignore Thread
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