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The Great American Mismatch. Plenty of Manufacturing jobs, too few people with the necessary skills
http://www.freerepublic.com/focus/f-news/2963039/posts
Manufacturing In The US Is Making A Historic Comeback
http://www.freerepublic.com/focus/f-news/2969059/posts
It’s funny, watching the commie/fascist political/regulator class fall from its government income and government-linked incomes. The funniest part will be the spending cuts of teh real austerity measures phase. Then we’ll see who really riots (the socialist elite who only control the pile of debt for now).
I bought a pair of New Balance shoes yesterday. The tag said “Made in the USA” and went on to say that they have five factories in the US that provide a third of all NB shoes to North America.
We manufacture twice as much in the US as we did in 1975. We just do it with many fewer workers.
http://mercatus.org/publication/us-manufacturing-output-vs-jobs-1975
I’ve been reading quite deeply about India’s economy.
I think it’s unlikely that a significant percentage of manufacturing jobs will “bleed” there, as the author suggests.
India’s infrastructure of roads, clean water, reliable electric power, etc., is currently not up to the job.
The barriers for foreign investment are quite serious.
And, even domestic manufacturers must negotiate a blizzard of paperwork, approvals, and ever changing regulations.
New industrial construction can literally take a decade to complete.
Corruption among low level government employees is ever present.
The currency, the rupee, has been unstable because of trade deficits, Central Bank policies, and ever changing regulations on gold purchases and foreign currency trading.
On the other hand, India’s stock market has performed very well in recent years, and very important nation wide economic reforms have been made over the last 20 years.
Bottom line...
India is still a developing nation, and the time table for that development is not clear.
They COST too much!
The high livers will ALWAYS outsource their menial stuff to others.
If it were ALL automatated, then it would STILL cost to much, for it’d take humans injected in the pipeline somewhere, and our Americans cannot live on what foreigners can.
There are low wage, economically depressed areas of the United States that can compete with offshore manufacturing, even in labor-intensive products that involve a lot of handwork.
A weak dollar makes such a proposition even more sensible.
Not every industry can be heavily automated because cost of goods requirements do not support such a large capital expenditure in order to introduce automation and robotics. Some industries require subjective assessments such as color, design and overall visual appeal that cannot be replicated by a machine.
Trade policy destroyed domestic manufacturing in the south at least. It had nothing to do with unions as they were never unionized. Labor cost is not that large of a percentage of cost of goods.
The dirty secret is that the decision to offshore was driven not by competitive pressure but a desire to increase profit margin. Retail price certainly didn't decline. Large retailers expect margins in the 60 to 70 percent range in my industry.
We can do it with made in USA product. However, our own margin is higher and we can still offer better margins to large retailers by offshoring, given a dollar that is not weak. A depressed dollar or a dollar crash brings it right back to domestic plants.
Manufacturing jobs will NEVER return to our country for several basic reasons:
A legal system out of control. No tort reform.
The EPA.
OSHA.
Unions and the total support for them from our Congress.
The lack of employees who have the skills needed and the work ethic that will make them productive.
The fact that we have gone from a free country to a new social utopia controlled by Socialists, Communists, and Marxists.
There are many more reasons that manufacturing won’t be back but it all relates to the ability of the business to actually wade through all of the regulations, legal minefields, and fines and taxes to make a profit.
Consumers buy “things”. Things are manufactured someplace.
It’s silly to turn ones back on those jobs, because that are literally thousands upon thousands of “things” to consume.
Consumers buy “things”. Things are manufactured someplace.
It’s silly to turn ones back on those jobs, because there are literally thousands upon thousands of “things” to consume.
So read the replies and not one put together all the reasons MFG is about to explode in the USA. MFG used to be labor and energy intensive. The robots now being deployed are removing the people from the MFG line. Unions are screwed, they have made sure they can not have a job. The new bots can thread a needle the first time every time. 3d printing is a major disruptive tech. Now here is the big deal, fracking. USA nat gas cost is about 1/7th of europe. Since energy is and will be even more of an important MFG input the USA’s energy advantage becomes huge.
And all of this has nothing to do with the eminent implosion of china’s economy.