Posted on 11/23/2009 6:34:43 PM PST by Mr. Jeeves
China State Construction Engineering Corp, the largest contractor in China, has bagged a subway ventilation project worth about $100 million in New Yorks Manhattan area, marking the construction giants third order in the United States infrastructure space this year.
The contract was given to China Construction American Co, a subsidiary, the Wall Street Journal quoted a source as saying.
The new project, along with the $410-million Hamilton Bridge project and a $1.7-billion entertainment project it won earlier this year, signals China State Constructions ambition to tap the American construction market, said Li Zhirui, an industry analyst at First Capital Securities.
Li, however, said the order came as no surprise as the US government is spending massively on infrastructure projects.
The three orders only account for about 4 percent of the value of its total orders this year, Li added.
In the first three quarters of this year, the Chinese construction giant signed more than $2 billion worth of contracts in the US market. China State Construction was also the contractor for a high school, a railway station and the Chinese embassy in the US.
(Excerpt) Read more at asialynx.com ...
if what you say is correct, I *am* glad they are using US workers.
But why not use a US firm, since (presumably) using US workers eliminates the wage arbitrage which is the "excuse of first resort" when outsourcing; and using a US firm would keep the money flowing in the US economy...?
Cheers!
As far as I am concerned, it’s not a matter of fairness, it’s a matter of trust. I don’t believe the Chinese are trustworthy. I’m tired of hearing stories about Chinese drywall, lead in children’s toys, melanin in baby formula, toxic toothpaste, tainted animal feed, and on and on. And don’t get me started on Chinese made steel. They will do anything to make a buck from the US.
The unit prices for the items of work reflect the respective bidders ( Contractors)internal production histories. Everyone pays the same for labor and equipment, the materials are the same...production is the wild card, it determines your cost. The “Profit” is the contingency you add for risk...sometimes more than 50% of you labor cost, if the job has problems and takes longer...your labor increases.
The labor in NYC is all Union, you are not going to bring in foreign workers on visa's.
How would the money not flow into the U.S. economy?
The NYC construction market is a very tough and competitive one, not for beginners. The Owners are very quality conscious and demanding, the inspection is tops, I know I am a Heavy Construction Contractor working in NYC.
Cheers!
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