Skip to comments.Jobs coming home (Why China will be losing manufacturing jobs to America)
Posted on 07/19/2012 7:43:34 PM PDT by SeekAndFind
News of our Olympic teams uniforms being made in China has prompted Sen. Chuck Schumer and others to fulminate anew about exporting jobs. But the futures going to look very different: Its China thats going to be worrying about losing jobs to us in the next few years.
US manufacturing is coming back home, from China and elsewhere. The trend started five years ago; since early 2010, its created more than half a million jobs in America.
By 2015, the Boston Consulting Group estimates, US industrial firms will add 800,000 more jobs jobs that arent going to China, but staying right here.
Call it Rising Eagle, Flailing Dragon.
Investment money has stopped flowing into China since last September; since April, its actually been leaving the country, as Chinas manufacturing sector has registered seven straight months of decline while ours (despite a sharp contraction last month) stands 8 percent higher than it was before the recession.
Made in China may be going the same way as Made in Japan did a couple of decades ago. Yes, China will still produce plenty, just as Japan does but it wont be an issue.
And China is going to have to import more of the goods its consumers crave but cant get at home. By 2020, in fact, it may be the Chinese Olympic team thats buying its uniforms in the United States.
The back-to-America trend is called reshoring and its replacing outsourcing, fast. From steel and computers to furniture, plastics, clothing and rubber, theres a $2 trillion-a-year US market for manufactured goods, and American companies are finding plenty of reasons to tap into it directly from here.
(Excerpt) Read more at nypost.com ...
1) The transportation costs of moving finished goods from overseas, especially across the Pacific is getting expensive.
2) Quality control: as US workers using new computerized tools and processes get better results than Indias or Chinas low-cost-but-low-skilled assembly lines. T
3) Rising Chinese labor costs, which jumped 13.6 percent last year.
4) The risk of doing business in a country like China, a dictatorship with a still-uncertain future. This years rumors of a military coup in Beijing spooked not only financial markets, but also CEOs of American companies looking at the vulnerability of their China-based operations if that country descends into chaos.
5) America has the rule of law and an environment that still fosters free-market competition, including for labor.
6) NOPE THE BLUE STATES WILL NOT BENEFIT, BUT, THE RED STATES WILL. As the number of right-to-work states grows (Indiana became the 23rd in February), expect firms both American and foreign to look to open plants where labor isnt stifled by union rules, and where they can deploy the latest smart manufacturing technologies.
A LIST OF JOBS COMING BACK:
* Michelin is breaking ground on a new tire plant in South Carolina;
*Volkswagen has new facilities in Chatanooga, Tenn.,
* Airbus is building a $600 million plant in Mobile, Ala.
* Samsung plans to invest more than $20 billion in various US manufacturing enterprises.
* Master Lock, recently returned to its original home base in Milwaukee,
* NCR, set up its ATM manufacturing division in Georgia
* Appliance Park in Louisville is filling up again, as GE moves manufacturing divisions back home from China.
HOW MANY BLUE STATES DID YOU COUNT FROM THE ABOVE LIST MY FRIENDS?
A while back a Minnesota company announced that it would be assembling wide screen TVs in a factory outside Detroit. The components will largely come from China but they cited transportation costs as their reason for not building them in China.
In the electronics industry it is common to find substandard parts and counterfeits. Chinese companies also specialize in copying products and building with cheaper labor and materials.
Corruption is one of the big reasons. China does not recognize patent protection and many companies have lost everything when Chinese managers basically stole all the product designs and equipment and started to produce knock-offs.
The government even gave a veiled threat to Apple, of all companies, to not investigate working conditions at Foxcom ( I know I mispelt the name). I think that woke up many companies about the realities of manufacturing in China.
Why on God's green earth would I do this in China when I have the best of the best right in my back yard (where I can enjoy grilling on my American made grill and drink a few cold American made brews while talking to the guy who's fabricating my products)?
it’s the corruption.
Chinese goods sold here in the Philippines and elsewhere in the third world are cheap so poor people buy them and local factories that produce the goods go bankrupt.
But the dirty little secret is that they are shoddy...and most middle class folks will buy American or Japanese for the quality. of course, the Chinese also “counterfeit” goods with the names of Japanese or American companies so unless you buy them from an upscale store which checks they are real, you sill might be buying a fake Chinese goods.
And this includes hardware, car parts, and medicines.
Fact is, it is (long) past time to bring manufacturing back to the USA.
Turn it around. Big time.
Having the jobs here is only part of the battle.
When the corporation is foreign the profits do not stay in America.
It’s like an American company moving manufacturing to another country because they can make more profit from foreign labor.
What starts as a trickle can be a landslide if the USA becomes more tax/regulation/investment friendly.
It’s called “Singapore”
Bad news is that once all these jobs come back, the cost of all these good is going way UP!
Our Washington State governor just met with Airbus trying to entice them to come to Washington.
If Airbus is building a half billion dollar plant in Alabama, why in world would they come to Washington and have to fight with the unions?
Furthermore, the last two governors haven't been all that friendly to Boeing. In fact, Locke lost Boeing headquarters to Chicago.
Reason 7. We are the new third world low cost producer.
Hope & Change baby.
I saw one. Milwaukee. Although the state may have nominally gone “red”, its going to take a whole lot more to change what would arguably be called the cradle of American socialism.
The Asian region saw a 24% decrease in private equity funds for the first half of 2012, taking in $26 billion. 18 of the 30 funds that closed so far this year were yuan funds.
RE: If Airbus is building a half billion dollar plant in Alabama, why in world would they come to Washington and have to fight with the unions?
Furthermore, the last two governors haven’t been all that friendly to Boeing. In fact, Locke lost Boeing headquarters to Chicago.
That Alabama is a right-to-work state was taken into consideration. The Airbus executives said so.
Gary Locke now, of course is ambassador to China.
This is all BS.
There are no jobs in the U.S.A only welfare and debt.
There is a lot of bs out there now to get Obama to look good. I don’t buy it.
while ours (despite a sharp contraction last month) stands 8 percent higher than it was before the recession.
woohoo , a whole 8 percent and then you take away inflation and what do you have? Such a long term trend ,surely not some manipulated stat right? How many smart phones made in U.S.A? zero. laptops zero, ipads zero. shall I go on?
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