Samsung is made in China and Korea, as is the iPhone. Again, if this were made in the US by people demanding $40.00 an hour, it would also be a $12,000 phone! (Exaggerated)
We have priced ourselves out of the manufacturing market.
I would LOVE to see manufacturing come back to the US. We have people who make $2.00 and less to build product in foreign countries. $2.00 is a very high number, by the way. We demand the highest of pay as well as the highest margins. No-one in any country, including the US would buy our overpriced products.
Trump has never proposed how he could even dream of bringing manufacturing back to the US. I would love to hear how he would “make†this happen. Sincerely.
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Cost per hour is not the final arbiter of whether or not it is cheaper/more expensive to produce within the United States.
Easier/cheaper to produce in US for US market:
1. Shipping costs to get product to market
2. Better trained workforce (general)
3. Better infrastructure (utilities, roads)
4. Security of corporate property and personnel
5. Not Corrupt system/no bribes required
6. Government expropriation
More Difficult/More Expensive to produce in US for US market:
1. Wages
2. Employment Taxes
3. Worker rights
4. Regulatory Compliance
5. High dollar valuation
If you look at the pro/con list there are several things which bake into the decision whether or not to go offshore with manufacturing.
When NAFTA was initially passed, many manufacturers attempted to make products in Mexico, but the potential for expropriation, bribery and safety of the company’s personnel made manufacturing in Mexico untenable no matter how low the cost of labor.
We have to focus on the manufacturing sector. We are witnessing a bloodbath right now.
So, how much an hour do those US manufacturing robots charge?
Yes. If labor costs were the determining factor, why would there be foreign car companies making cars here?