Australia : Wave of imports wipes out surfboard makers

[Mid]

Wave of imports wipes out surfboard makers
Kathleen Donaghey
February 12, 2011


WAVE OF IMPORTS: Blackwidows Surfboards owner Steve Griffiths says Chinese imports are forcing local board makers out of the industry.
Picture: Robyne Cuerel. Source: The Sunday Mail (Qld)

AUSTRALIA'S iconic surfboard makers are giving up after a futile battle against cheap mass-produced Asian imports.

After 42-years in the industry, craftsmen like Steve Griffiths, from the Sunshine Coast, are closing their factory doors.

An influx from China and Thailand in the last five years made it hard to etch a living, but the last year has been killer.

Mr Griffiths has posted a "For Lease" sign outside his Warana factory, Black Widow Surfboards, and may try medicine cabinet making.

Industry insiders have warned this scenario is being repeated across the country also because of an economic slowdown.

Mr Griffiths said Australia was losing more than just locally made surfboards.

"The thing with China and Thailand is there will be no innovation, only copying," said Mr Griffiths.

"All the innovation from guys who shaped boards in their backyards, and made boards better and tried new styles, all that will be gone."

Surf shops are making huge profits on imported boards because of the massive mark up.

Mr Griffiths said a Chinese longboard was imported for about $300 and sold for about $1100 - an $800 profit.

But the Australia version cost about $1000 to make and retailed between $1200 and $1400 - only a maximum $400 profit.

"The only reason people go to Asia is to make more money. You don't go there for a better product," said Gold Coast materials supplier Darren Burford.

"(But) the end user doesn't see the better price. It's the guy selling it that gets more money."

Surf shop owner Neil Raaschou makes a point of supporting local craftsmen and stocks 90 per cent Aussie boards in his four stores.

However Mr Raaschou does sell quality Asian-made beginner boards, like mini mals, because of customer demand.

"It does serve a purpose.Generally the beginner and novice market is driven by price because they don't want to fork out a lot of money," he said.

couriermail.com.au

[blue]

"The thing with China and Thailand is there will be no innovation, only copying," said Mr Griffiths.

yes he is right there,
the Chinese especially only understand imitation -nature too got bored with them , churning out people that all look and think the same .

guess Australia is suffering from thier overvalued $ , making imports so cheap

[BobR]

One of the big lies that has come to be considered "the truth" only because the lie has been told so many times is that free trade is an absolute good thing.

[blue]

many people in the west see globalisation as inevitable and universal-
which it isn't
they think that because thier country is flooded with imports , immigrant workers ,foreigners buying property, etc that its the only model.
How can it be good if one country ,china, can make everything cheaper , and control its exchange rates too .

[Tunaka]

A Chinese surfboard? How long will that last....

[dirtydog]

$1,200 for a surf board, Thank God the Chinese makes them cheaper.

[socal]

"The thing with China and Thailand is there will be no innovation, only copying," said Mr Griffiths.

yes he is right there,
the Chinese especially only understand imitation -nature too got bored with them , churning out people that all look and think the same .

guess Australia is suffering from thier overvalued $ , making imports so cheap

Its a good thing.

Now Aussys have more money to spend on other things because they are spending less on surf boards. No different then oil. Since oil is priced in US dollars, every time the Aussy dollar goes up, Aussys are paying less for oil which leave more money left over to spend or invest in other things.

[socal]

One of the big lies that has come to be considered "the truth" only because the lie has been told so many times is that free trade is an absolute good thing.

Do you prefer to pay more for things or less ?

The lie that has been told many times is that having a weak currency is a good thing. If it is so great having a weak currency then just move to China and earn Yuan.

[socal]

many people in the west see globalisation as inevitable and universal-
which it isn't
they think that because thier country is flooded with imports , immigrant workers ,foreigners buying property, etc that its the only model.
How can it be good if one country ,china, can make everything cheaper , and control its exchange rates too .

The Chinese buy US debt to peg the Yuan to the dollar. When they depeg and stop buying US dollars, the US dollar will fall like a rock and everyone in the US that thinks a weak currency is a good thing will be in for a rude awakening.

Hell, why not drop the US dollar by 80% so Thai people can come visit the US on vacation.

[shadow role]

buy and store chinese money...!

[blue]

One of the big lies that has come to be considered "the truth" only because the lie has been told so many times is that free trade is an absolute good thing.

Do you prefer to pay more for things or less ?

The lie that has been told many times is that having a weak currency is a good thing. If it is so great having a weak currency then just move to China and earn Yuan.

for most non business people , a strong currency is indeed good
Britain had a strong currency, eg 69 to the baht 5 years ago
very nice ,but was all smoke and mirrors economy ,
so could not last , now its 44 , coupled with much higher prices in Thailand
in other words everything costs twice what it did
we just borrowed from the future to get that strong currency
now we are paying for it
so a strong currency is only good if its appropriate to the countries economy ,

[kingwilly]

There's a whole lot of moaning about them and us that is tinged with a nationalist undertone. If your product is not competitive, make it competitive, target a niche market or make it cheaper.

[the dogcatcher]

Solly.
Can't make it pay.
Fucking live with it, like the rest of us.
You're fucking whinging like a Phuket tuk tuk driver.

[terry57]

Australia cannot compete as our labour costs are stupid and this is what sends business spiralling down the shitter.

So many products imported from China as it so much cheaper and the quality is Improving all the time, match that up with 12 month warranty on most product and there's the job done.

There now importing a 4 wheel drive called " The Great Wall " under cutting Toyota by $ 10,000.

Of course its not as good as a Toyota but they provide good back up service and extended warranty so there selling a motsa of them.

Regards the surf board issue goes many people want an entry level board to learn on and for there kids so why pay top dollar for an Aussy one. ?

[DJ Pat]

Plenty of surfboard shops here in Newquay, wonder what the situation is, given that this is the UK's number one surfing destination.

[Rural Surin]

One of the big lies that has come to be considered "the truth" only because the lie has been told so many times is that free trade is an absolute good thing.

....as there is nothing free about this free trade. Controlled and suppressed trade fits right.

[kingwilly]

"The thing with China and Thailand is there will be no innovation, only copying," said Mr Griffiths.

So what is the problem then ?

[socal]

One of the big lies that has come to be considered "the truth" only because the lie has been told so many times is that free trade is an absolute good thing.

Do you prefer to pay more for things or less ?

The lie that has been told many times is that having a weak currency is a good thing. If it is so great having a weak currency then just move to China and earn Yuan.

for most non business people , a strong currency is indeed good
Britain had a strong currency, eg 69 to the baht 5 years ago
very nice ,but was all smoke and mirrors economy ,
so could not last , now its 44 , coupled with much higher prices in Thailand
in other words everything costs twice what it did
we just borrowed from the future to get that strong currency
now we are paying for it
so a strong currency is only good if its appropriate to the countries economy ,

Germany and Japan have higher wages then the US does yet they have trade surpluses with China. A country can have a high value currency and a strong export economy if they have capital and productive capacity.

The UK was the epicenter of the financial ponzi industry over the last 10 to 15 years, that game is over.

[BobR]

Western workers are not unreasonable when they want a livable wage, workers compensation for legitimate injuries in the workplace and a reasonable paid vacation. Western governments should only allow imports from countries which provide their employees those basic rights.

[blue]

but I don't fancy living inside a Swiss clock

[Ratchaburi]

"The thing with China and Thailand is there will be no innovation, only copying," said Mr Griffiths.

So what is the problem then ?

There is a Thai surf bourd manufacture in Chonburi.
There have many surfies from all over the would who come for a holiday & shape the custom bourd as well they have Furangs working looking after the production bourds.
The same thing would be going on in China

[blue]

tell you the truth i don't understand how China does it
it produces goods , USA buys them ,
but china buys little back in return .
to stop this causing Chinese currency to rise , they peg it at a low level ,
then China lends USA the money back so they can to buy more
and the cycle repeats itself
how can china afford ,to produce all the goods , just for a pile of IOU's ?

[socal]

Western workers are not unreasonable when they want a livable wage, workers compensation for legitimate injuries in the workplace and a reasonable paid vacation. Western governments should only allow imports from countries which provide their employees those basic rights.

The last time I checked, Germany and Japan have livable wages and workers compensation, yet they both have TRADE SURPLUSES with China, meaning China imports more from Germany then Germany does from China.

Get with it.

[socal]

tell you the truth i don't understand how China does it
it produces goods , USA buys them ,
but china buys little back in return .
to stop this causing Chinese currency to rise , they peg it at a low level ,
then China lends USA the money back so they can to buy more
and the cycle repeats itself
how can china afford ,to produce all the goods , just for a pile of IOU's ?

It cant, the game is going to be over soon and the biggest losers are going to be the US. China pegs the RMB to the dollar by buying US debt/dollars. Its the only way. Now what is going to happen when China stops buying all this debt from the US ? The dollar will fall, like 30 to 50% and interest rates will go up. It will bankrupt the US.

China will obviously lose too but a decrease in the dollar is an increase in the RMb because the RMB is the creditor, the RMB controls the floor of the dollar. As the RMB goes up, the Chines will have more purchasing power to consume their own production because commodities are priced in US dollars.

[Loy Toy]

With today's digital modelling technology and CNC machining there is absolutely no reason why the Aussies cannot compete because they have access to exactly the same technology that the Chinese are using to beat them down.

In fact labour content is minimal and the raw material prices have to about the same.

Stick "Aussie made" on the boards, work a little harder and more efficiently and compete on price with the Chinese instead of throwing your hands in the air and sticking up the surrender flag.

Defeatist yobos if you ask me.