How will Weber shift from China manufacturing? Or will they not?
- Thread starter Brett-EDH
- Start date
Timothy F. Lewis
TVWBB 1-Star Olympian
Turn the containers into smokers!
Grant Cunningham
TVWBB Pro
Fact: Weber is not doing well. They've been taken over by private equity, which has already loaded them with debt (first step in the private equity playbook.) What they need now is a visionary, someone dynamic who can rekindle the brand, dramatically boost sales, pay off the debt and guide the company back to health and prominence.
They don't have anyone like that.
So they'll likely continue to follow the private equity path: 1) find an even cheaper place to manufacture; 2) cut product quality to the bare minimum; and (in the absence of a long-term plan) 3) focus relentlessly on the quarterlies. #3 tends to generate more of #1 and #2, which leads to a downward spiral that either ends in bankruptcy or a sale to a foreign entity.
COULD things turn out differently? Yes, they could. It even happens, occasionally — but almost never without inspired leadership. Most of the time such companies follow the trail blazed my many private equity takeovers before them.
I wish I could be more positive, but I've seen this scenario play out in too many cases over the decades.
They don't have anyone like that.
So they'll likely continue to follow the private equity path: 1) find an even cheaper place to manufacture; 2) cut product quality to the bare minimum; and (in the absence of a long-term plan) 3) focus relentlessly on the quarterlies. #3 tends to generate more of #1 and #2, which leads to a downward spiral that either ends in bankruptcy or a sale to a foreign entity.
COULD things turn out differently? Yes, they could. It even happens, occasionally — but almost never without inspired leadership. Most of the time such companies follow the trail blazed my many private equity takeovers before them.
I wish I could be more positive, but I've seen this scenario play out in too many cases over the decades.
John_NJ
TVWBB Wizard
While Wednesday’s data shows that an index of China’s new export orders rose to 52.4 in February, the highest level since May 2011, other data from the region suggest that global demand for goods is set to continue slowing. South Korea’s exports fell 12% in the first two months from a year earlier, compared with a 10% decline in December, suggesting that global demand for goods slowed further despite a stronger rebound in China so far.
www.wsj.com
China’s Economy Seen Emerging From Zero-Covid Shadow
A sharper-than-expected expansion of activity offers Chinese leaders an opportunity to shift the spotlight away from pandemic missteps.
www.wsj.com
BFletcher
TVWBB Honor Circle
Tariffs and geopolitical concerns among manufacturing leaders have contributed to some shift away from China but there is also a global demand downturn, which may be accelerating. We know the economy is cyclical. I'm not smart enough to know if there's any reason for Weber to move production, nor am I smart enough to know how to delve deep in this dialog while abiding by site rules, lol.
Brett-EDH
TVWBB Olympian
Stick to discussing Weber shifting, and if so, how. And you’ll be fine. This isn’t about China. It’s rather the shifting trend to move production elsewhere.
Weber’s shipping costs exploded during the pandemic which forced massive price hikes. Question is can they regain lost pricing power to balance value and price versus competitors offerings. That’s what I’m interested in.
BFletcher
TVWBB Honor Circle
Transportation costs are declining. There were times over the past couple years when containers from Asia were full and folks either had to wait extended lead times or ship their goods via air vs ocean, which impacted transportation costs by even a larger delta. I'll sit back and read the informative insight from you good folks 
Rusty James
TVWBB Emerald Member
Maybe a little off topic, but due to China's "one child" policy years ago, there population is expected to shrink by 50% in the near future according to some videos I saw last year. This will no doubt hurt their workforce.
Russia is already there due to losses in WWII.
Russia is already there due to losses in WWII.
Brian B Atlanta
TVWBB Gold Member
In 2016 they went to 2 children, then currently I believe its 3 children. Yes it shrinks the population workforce but that should take care of itself down the road. Ironically in the US its under 2 children for an average family by choice of course so basically we are kind of in the same boat the population is not growing or its flatlined gonna be the same problem with the workforce. This is whats happening IMO in the employment numbers plenty of jobs certain people might not want those jobs but not enough bodies to fill them I am 69 by the way I got 2 kids, sister has 2 kids brother has 2 kids. Of course others may certainly have more children but its been a trend for years and please this has nothing to do with politics cause I don't want Chris to kick me off.