rxmd
May contain traces of nut
Hi Mike,
So your estimate for the "major variable" of labour costs rests on three assumptions, some of which are rather weak. On the other hand we don't have to resort to this kind of reasoning, because we have hard statistics for labour costs; for example this one using data by the German Institut der Deutschen Wirtschaft on hourly labour costs in manufacturing:
Assuming this is vaguely accurate, it shows that if labour costs were the issue, it would have made much more sense to outsource production to Eastern Germany, where it's relatively cheap and where there is a flourishing optical industry in Jena (incidentally the former Zeiss center). So au contraire, labour costs alone probably aren't the issue; I'd assume the issue was rather the complications and costs for setting up volume production of rangefinder lenses beyond the "specialty" 15 and 85mm, which are unnecessary if you have an experienced outsourcing partner available.
You are making a lot of assumptions. Firstly, we don't know that Zeiss has the capacity to make extra rangefinder lenses in significant numbers in Germany; I would assume that they would have to build this capacity up, and then it's cheaper to outsource to someone who has. Cosina probably has a lot of processes for outsourced production of 35mm lenses already in place, since that's how they make their money, while Zeiss would have to set that all up anew. Secondly, we don't know if production processes are really similar or nearly identical. Thirdly, you only have Zeiss' word that quality control is similar or nearly identical.ZeissFan said:Carl Zeiss AG has the capacity to make all of its lenses in Germany (not the bodies, however). So why does it pay Cosina to make all but the most complex of the ZM lenses in Japan? If production processes and quality control are similar or nearly identical in each country, the only major variable must be the cost of labor
So your estimate for the "major variable" of labour costs rests on three assumptions, some of which are rather weak. On the other hand we don't have to resort to this kind of reasoning, because we have hard statistics for labour costs; for example this one using data by the German Institut der Deutschen Wirtschaft on hourly labour costs in manufacturing:
Assuming this is vaguely accurate, it shows that if labour costs were the issue, it would have made much more sense to outsource production to Eastern Germany, where it's relatively cheap and where there is a flourishing optical industry in Jena (incidentally the former Zeiss center). So au contraire, labour costs alone probably aren't the issue; I'd assume the issue was rather the complications and costs for setting up volume production of rangefinder lenses beyond the "specialty" 15 and 85mm, which are unnecessary if you have an experienced outsourcing partner available.