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  • Dirt cheap

    Something interesting is happening here in Canada. The Chinese Yuan is fixed to the value of the US dollar. The US dollar is taking a serious nose dive lately and the Canadian dollar has gained a huge amount of value relative to the USD. That means it is also gaining against the Yuan. At the same time the quality of Chinese products is rapidly rising to acceptable levels. I did some shopping at a local discount store (not a big box but a small local chain) and he had air compressors for sale at the equivalent of $89.00 US. Real hp rating is 1.5 hp and rated for 5.2 cfm at 120 psi. I bought one since the big shop compressor although on wheels is a pain to move. The new compressor is well made, has all the right safety features including a thermal cutout. It's reasonably quiet (my wife can't hear it in the house from our attached garage). It even has a sight glass for the oil level and a regulator. Most interesting are the instructions. Although the grammar isn't the best it was written by someone who actually cares about tools. They give various hints and maintenance tips that go far beyond what I would do. Suggestions on how to dissasemble for cleaning, even suggestions on preserving for long term storage if needed. Also, no assembly required.

    The way it is going with the currency values Chinese manufactured goods are selling here below cost. Don't know how long this can continue. China is going to be forced to revalue the Yuan soon. That is really going to upset the apple cart.

    Free software for calculating bolt circles and similar: Click Here

  • #2
    Does anyone know an importer of the Changfa diesel engines in the great white north?


    • #3
      I see the price of Chinese products rising too. Remember when the wall came down in Berlin. I had 2 pairs of Zeiss binoculars. I sold them for twice what I paid for them. I figure Asian products will go the same route. I've got a couple of Jet machines I'm saving just for that reason.


      • #4
        It ain't a "gonna", its already happened.

        We do buy some products made to our spec in china. They have raised the prices a couple times in the last year or two. They are raising prices to most everyone.

        I happen to know that wages in china are rising also, which is part of it. That can only be good for others, as the chinese will be competing on a more level field.

        They are also, as a result, having to fill the increasing demands of a large internal market.

        Up to now, labor in china has been "free". You paid only for materials, and the labor was tossed in at no cost. When you figure that includes mining coal and iron, smelting, steelmaking, etc all up the chain from raw materials to product, that is a HUGE saving. The first dollar of labor at the mine influences the cost to everyone else. It does so at a multiplying rate, as each stage adds a pecentage to that first dollar.

        Pegging the yuan to the dollar had the effect of causing the price to US destinations to stay constant, and generally artificially low regardless of other influences. That needs to change before the US gets totally gutted of all industry and turns into a large third world country.

        If fuel costs continue to rise, and they will, imported goods may also rise in cost due to that. That will really slam Walmart, too, which won't hurt my feelings one bit. Other impacts might be worse. However, it may also bring back local production, corner stores, etc, all of which would be of significant benefit.

        The cost imbalance you mention will not last, as you mention.

        The good news is that china is the last stand. there isn't a credible nation with low labor cost, an industrial history and the drive to use it anywhere else left on earth. India isn't there, for cultural reasons, and Africa is still largely a lost cause, industrially, along with much of South America.

        Keep eye on ball.
        Hashim Khan


        • #5
          I read a couple of days ago that China has been trying to fix the Yuan to the Euro, ie, it's dumping the dollar as a value peg. What surprised me even more was reading that currencies such as the Guatemalan Quetzal have been gaining in value against the dollar and the Guat government is trying to figure out how to reverse this since so many of its citizens survive by receiving 'remesas' (money wire transfers) from relatives living in the US. I fear it won't take much for the US economy to crash and if this happens all of us will be living in "interesting times" (to quote an old Chinese curse).


          • #6
            89$ for compressor? HF stores sell those same compressors for around that price quite often.


            • #7

              P A Lux
              P A Lux


              • #8
                A local cheap auto parts place has just brought 2hp compressors out on sale at $85aud which works to $65usd. I was considering getting one just to gut it for the motor, so many things to do with a 2hp motor...


                In the past 12 months the prices of some tool prices here has just been insane. I have a chinese brad nailer that I bought for $99aud and a few weeks later they came on sale bundled with a 1.5hp compressor for the same price!! Chinese lathes have also take a price tumble of up to a few hundred dollars in some of the smaller machines...


                • #9
                  Our latest load at work was on average 20% lower in cost,that despite the increase in transportation cost.
                  Our importer told us the cost of bring in a 40' container went from $5600 to $8900 in the past six months.The retail value of that container is around $120,000.The item cost actually went down,desipte the increase in transport cost.

                  With the dollar falling,American goods are getting cheaper,not more expensive,look for more countries squirming around under thier trade treaties.
                  I just need one more tool,just one!


                  • #10
                    That is odd. You would think that with the falling US dollar, prices would go up on imports. The Euro is around $1.30USD now and expected to gain. China and Russia want to quit buying USD and move to the Euro. Some say that could move the USD towards the 2:1 value of the Euro. If that happends, expect imports to skyrocket along with interest rates and other goods.

                    You think the Global Economy has been affecting the US in the past, just wait and see what happends when the USD is worth $0.50 to the Euro.

                    Steel prices could easily hit $4-$6/lb. here in the US. Your $50k/yr job will just bearly keep you above the poverty level. Expect more "price adjustments" soon.


                    • #11
                      Maybe we should nuke Europe.


                      • #12
                        You guys be scarin' me! (Think happy thoughts)
                        This will probably happen to the dollar:

                        Hoffman in Warner Robins Ga

                        [This message has been edited by hoffman (edited 12-01-2004).]


                        • #13
                          Just read the headlines>

                          Ukraine crisis threatens EU security
                          WWII tensions simmer between German & Polish nationalists
                          Right wing nationalists surging in East Germany
                          Greece accuses Macedonia of territorial claims
                          UN: France, Germany need 300 million immigrants by 2050 to maintain welfare states (!)

                          So how long before this tinderbox blows up again? Europe after all is just a collection of ancient tribes who've been at each other's throats for 2 thousand years. And when it does blow up, who do you think they're going to turn to to bail them out? And what should our answer be?

                          (As Mark Steyn has noted, the huge welfare state of Western Europe is constructed on the premise that the world has moved beyond war, therefore no military is necessary, which is why it took America to stop the genocide in Bosnia.)
                          I just need one more tool,just one!


                          • #14
                            And here we are with the most fiscally and morally irresponsible administration ever. Stuck in another Vietnam with our heads in the sand. Biggest increase in the national debt ever.

                            Maybe if we just stifle all dissent in this country it will just go away.

                            (Not a democrat, just a disguntled Republican)


                            • #15
                              And, Russia, China, France being on the Iraqi payrole.
                              France in trouble with thr EU because of their deficit.
                              Unemployment much higher in Europe than here. Their huge populations of brain dead Moslims.
                              We ain't buried yet.
                              How about a D-DAY, JUNE 6, 2010? About time to liberate France again.

                              [This message has been edited by PSD KEN (edited 12-01-2004).]