Monthly Archives: January 2005

Global Manufacturing And Los Angeles

 

 

More and more, there is an element of global manufacturing that I call “shelled out” production. There are no signs on the building. There is no one in the office. The workers either pretend or truly can not speak English. The manufacturing is composed of sub-assembly and contract piece work. There is no one in charge and the workers don’t know where their goods will go. As soon as the customer changes its allegiance to a slightly lower cost provider, the entire operation can fold. Our manufacturing system is largely devolving to the manufactured part and who can make it the best and ship it the fastest. There is virtually no other measure.  

Many restaurants boast Cal-Asian as a cuisine, but it is also a description f the convergence among peoples, processes, and supplier networks. From the largest corporation, to the smallest start up, we now live in one global manufacturing system. This melding takes place in the buildings of Gardena, Vernon, and City of Industry. It is a reaction of business people on the phone, in the air, and on the internet how are forging this tighter interdependence based on delivering lower priced and better designed products. he logic of the marketplace is reshaping the clients I have and the deals that I do. 

Some clients demand super efficient buildings to get he goods in and out. Others will be satisfied with semi-functional spaces as long as there is flexibility in lease term. One example of he latter is how many different parts of the garment industry use odd loft-like spaces as long as it is cheap and short term. Shared loading isles, common docks, and prorated utilities are almost industry standard. Tenant credit challenges can often be overcome with guarantees, and ever more prevalent, Letters of Credit. There are many mysteries to dealing with foreign clients. Language and customs are primary obstacles. However, as Asia and California become more tightly integrated, cultural barriers have lessened. The children of original immigrants and U.S. educated foreign leaders are asking the critical business and real estate decisions. A new group f Korean and Chinese real estate brokers have also improved negotiations.I hope in the future, whatever the nationality, that the people behind “shelled out” buildings become contributors to society s they prosper from the global production cycle.