Posted on 10/23/2014 5:41:10 AM PDT by rjbemsha
Large manufacturers are increasingly moving production back to the United States from China, according to a new report by The Boston Consulting Group.
After watching the US bleed jobs for years as manufacturers offshored production to China, "now we're watching a switchback," Harold Sirkin, a co-author of the BCG research, told AFP.
More than 70 percent cited better access to skilled labor as a reason to move production to the US, more than four times as many who cited it for moving production away from the US.
For goods that would be sold in the US, nearly 80 percent gave shorter supply chains and reduced shipping costs as a motive for reshoring.
Cutbacks in China were projected to be sharp, down to 11 percent of total production capacity, a decrease of 21 percent from the 2013 survey.
(Excerpt) Read more at sg.news.yahoo.com ...
Corporate patriotism-right?
Bump...maybe they finally heard you? :)
It is about (&^$*-ing time.
America is in competition with China.
Except American businesses are currently, selling out to China.
China is not on our side.
Our businesses need to stop selling out America.
BRING BACK AMERICAN BUSINESSES.
For real.
American businesses need to support America.
Just in time to give them to the amnestied illegals.
Lol. The Almighty Bottom Line.
Does anyone know the credibility of theis Group, and who paid for the "survey"? Just in time for an election "talking point".
By the way unemployment is also dropping, but just don't mention the 92.5 Million that have given up and aren't counted.
Real manufacturing or is this where it’s 98% made in China, from crap, contaminated Chinese raw materials, shipped to the US for the last 2% final assembly, plus a “Made in USA” label?
Jan 10, 2014
Columbus —
Gov. John Kasich praised a plan by Fuyao, a Chinese auto parts producer, to bring a manufacturing operations into the former General Motors plant in Moraine, during an announcement today in Columbus.
The plant is expected to hire up to 800 workers.
Fuyao recently announced they were hiring more than 800. This isn’t an American company.
What will be interesting, will be whether Fuyao hires anyone other than Chinese to operate the plant.
Remember our laws, are very ethno-centric about what constitutes “discrimination”.
The Chinese may just operate a plant in America, and staff it entirely with Chinese.
No real benefit, if that is the case.
This isn’t really surprising given the shoddy rip-off quality of many Chinese made goods. For example, there is a very nice design for a combination end table and lamp that’s offered in various configurations by many American distributors, Lowes and JC Penny included. I tried to buy one the really worked. Although a simple design, each was plagued by major manufacturing defects that mostly resulted from shoddy workmanship and cheap shortcuts that devastated the quality of what should be a good, simple product. I had similar problems with lined woolen fatigue sweaters I bought from Gander Mountain, sweaters the had a great design but were shoddily made. All in all, IMHO, the only way an American company can out source to a Chinese “partner” is if the American company rigidly polices that “partner” and has somebody, fluent in Chinese, on scene, to police its interests 24/7. Otherwise an American company is likely to find itself screwed by a rip-off scam designed to look like a legitimate business enterprise.
I hate to say it but 6 years of flat and declining wages has made America comparatively competitive in the private sector. For the sake of taxpayers we need compararable reductions in public sector pay. Start with pension cuts for public employees. The fly in the ointment is Obamacare. It makes employment expensive.
As automation increases and the labor content in goods decreases, mfg will be back in America.
That is assuming that regulatory issues do not chase them offshore.
Robots.
I encourage you to read the book Factory Man by Beth Macy. It is about John Bassett III and his fight to save the Vaughan-Bassett Furniture plant in Galax, Virginia. that plant is now the largest manufacturer of wooden bedroom furniture in the United States. For anyone who thinks that outsourcing and building things as cheaply as possible is always the best answer, that book may change their thinking.
As someone directly involved with manufacturing and working with Chinese I can offer this observation through my experience. (I have a CNC, tool and die manufacturing shop and expanding in to Europe and have worked directly with Chinese clients)
I have had several clients who were all under the impression that the only way to afford manufacturing their products was to go to China. The client will take their idea, go through one of those rip-off investion firms, then take everything to a Chinese factory that says “Yeah, no problem, we can make that cheap.”
Before my clients even got their first article the Chinese had already copied their inventions and it would be for sale at their competitors.
Once they learned their lessons and their money was gone they would bring their ideas to me and my buddies. The prices were competitive and most of the time cost less then Chinese. Unless you are a huge corporation or need extremely high production rates with the power and knowledge to deal with Chinese companies you will fail.
In the Obama era small shops and inventors will have to stay under the radar with small runs. The best way to do that is keep it local.
Lol. The Almighty Bottom Line.
We keep hearing about how evil CEO's don't care about God or Country but let's face it, running a business is like sewing or carpentry and we don't complain about the evil unpatriotic nail-pounders and seamstresses because that talk is well, stupid.
We also keep hearing this cr@p about how "businesses need to stop selling out America"--yet America is great and industrial production is double what it was when NAFTA began.
Shhhhh!!!!! You’ll ruin some people’s raison d’etre!
I can cite another reason, lower cost of input materials. With the fracking boom, many petrochems are much cheaper here now. There is a big growth in plastics production in the USA, the basic building block of most consumer goods.
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