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There is a lot more complexity here than that. For example G&E moved some manufacturing back to the US back in 2013: http://www.npr.org/sections/parallels/201

There is a lot more complexity here than that. For example G&E moved some manufacturing back to the US back in 2013: http://www.npr.org/sections/parallels/2014/01/22/265080779/as-overseas-costs-rise-more-u-s-companies-are-reshoring http://www.npr.org/sections/parallels/2014/01/22/265080779/a... Another article covering the same trend around the same time: http://www.economist.com/news/special-report/21569570-growing-number-american-companies-are-moving-their-manufacturing-back-united http://www.economist.com/news/special-report/21569570-growin... And from the Atlantic: https://www.theatlantic.com/magazine/archive/2012/12/the-insourcing-boom/309166/ https://www.theatlantic.com/magazine/archive/2012/12/the-ins... Bottom line is that shorter supply chains, better/cheaper infrastructure, and better quality control has made bigger companies re-evaluate "overall" cost of production and the maintenance tails therein. And, contrary to popular belief, America is not so far out of the race as to not have a chance. Edit: One more from Forbes... https://www.forbes.com/sites/johnmcquaid/2012/12/06/why-apple-is-bringing-manufacturing-back-to-the-united-states/#680b4cfd3208 https://www.forbes.com/sites/johnmcquaid/2012/12/06/why-appl...

AnthonyMouse 10y ago
Completely agree that there are advantages to manufacturing here, but if they actually outweighed the pre-automation labor cost, more companies would be doing it. And a lot of the companies still manufacturing here are using automation. GE literally has an industrial automation company: http://www.geautomation.com/ http://www.geautomation.com/
zebrafish 10y ago
Looks to me like all of those articles are about the Louisville, Kentucky GE Plant where they negotiated lower pay for their workers. I'd say that's an example, not a trend. Companies have been looking at overall cost of production for a long time. That's how they've calculated margins and filed a 10-K for the past 50 years. The bottom line is until overseas workers demand increased standards of living or US consumers show a willingness to pay a higher price for locally manufactured goods, this trend will continue. My question is, what does the end-game look like for a fully automated economy? You're either an entrepreneur with a fully automated supply chain, manufacturing, marketing, sales, and finance organization producing a good that is highly demanded by other fully automated businesses, or you starve?
- tzakrajs 10y ago
  You probably could be given charity and live on a compound provided as humanitarian assistance by the automator oligarchs. "Managing the human problem"
- AnthonyMouse 10y ago
  Automation lowers costs. That means either things cost less so you can make a living working fewer hours at lower wages, or companies are more profitable and we can tax them to pay for social assistance programs.
  - thatfrenchguy 10y ago
    Or bigger executive bonuses.
    - mstolpm 10y ago
      So, the next step should be to tax executives and their bonuses accordingly.
- icantdrive55 10y ago
  I perceive a bleak future. I was suprised to learn that the main reason Coal Miners are out of work is because of mining automation. I perceive a world where people just stop buying. Yes--the wealthy will still buy their toys, but their will be a time where so much missery/homelessness; they won't be able to enjoy the luxuries of wealth. Even right now--I feel weird eating in a resturant while a guy outside is hungry. I feel we will need to open up federal, state, and county land; and allow free camping. (They have made it literally a crime to be homeless.) I feel a Basic Income will need to be seriously looked into. I hope we never turn into a country that just overlooks the misery around them. Some days, I feel we have crossed that line.
  - mistermann 10y ago
    > I feel we will need to open up federal, state, and county land; and allow free camping. I agree, I predict within the next 10 years or so we're going to start seeing some trend of people moving out into the wilderness due to downright necessity.
YZF 10y ago
I worked for a company that moved a major product from being manufactured in Canada to Mexico. At the meeting where everyone was laid off the manager had the nerve to tell people they are moving the product because they estimate they can save 5%-10% of the manufacturing cost. 5 years later manufacturing was moved back to Canada after it ended up being more expensive and the quality was lower. OTOH there was another product that was successfully built in China but it involved a complete redesign and was essentially a different product. There's definitely more to this than meets the eye and the decisions weren't always motivated by pure economics. Sometimes managers decided to move something to China just because everyone was doing it and they were under pressure to do so. Not because it was the right thing for their business. Managers making bad or short term decisions isn't exactly a new thing, their incentives/motivation varies.
- allengeorge 10y ago
  Bombardier?
  - deleted 10y ago
    [deleted]
  - YZF 10y ago
    Even though this was 10 years ago it's probably still confidential. This was a Canadian company acquired by a US company which then went through a series of "cost cutting" measures.
- Spooky23 10y ago
  That's amazing. 5-10% is a really small savings. When people here eye roll union guys they should think about that. I bet the executive bonus plan accounted for 5% of COGS.
  - adrianN 10y ago
    5-10% is a pretty big saving if your profit margin isn't all that big.
dredmorbius 10y ago
NB: it's "GE", not "G&E".

AnthonyMouse 10y ago

Completely agree that there are advantages to manufacturing here, but if they actually outweighed the pre-automation labor cost, more companies would be doing it. And a lot of the companies still manufacturing here are using automation. GE literally has an industrial automation company: http://www.geautomation.com/ http://www.geautomation.com/

zebrafish 10y ago

Looks to me like all of those articles are about the Louisville, Kentucky GE Plant where they negotiated lower pay for their workers. I'd say that's an example, not a trend. Companies have been looking at overall cost of production for a long time. That's how they've calculated margins and filed a 10-K for the past 50 years. The bottom line is until overseas workers demand increased standards of living or US consumers show a willingness to pay a higher price for locally manufactured goods, this trend will continue. My question is, what does the end-game look like for a fully automated economy? You're either an entrepreneur with a fully automated supply chain, manufacturing, marketing, sales, and finance organization producing a good that is highly demanded by other fully automated businesses, or you starve?

tzakrajs 10y ago
You probably could be given charity and live on a compound provided as humanitarian assistance by the automator oligarchs. "Managing the human problem"
AnthonyMouse 10y ago
Automation lowers costs. That means either things cost less so you can make a living working fewer hours at lower wages, or companies are more profitable and we can tax them to pay for social assistance programs.
- thatfrenchguy 10y ago
  Or bigger executive bonuses.
  - mstolpm 10y ago
    So, the next step should be to tax executives and their bonuses accordingly.
icantdrive55 10y ago
I perceive a bleak future. I was suprised to learn that the main reason Coal Miners are out of work is because of mining automation. I perceive a world where people just stop buying. Yes--the wealthy will still buy their toys, but their will be a time where so much missery/homelessness; they won't be able to enjoy the luxuries of wealth. Even right now--I feel weird eating in a resturant while a guy outside is hungry. I feel we will need to open up federal, state, and county land; and allow free camping. (They have made it literally a crime to be homeless.) I feel a Basic Income will need to be seriously looked into. I hope we never turn into a country that just overlooks the misery around them. Some days, I feel we have crossed that line.
- mistermann 10y ago
  > I feel we will need to open up federal, state, and county land; and allow free camping. I agree, I predict within the next 10 years or so we're going to start seeing some trend of people moving out into the wilderness due to downright necessity.

YZF 10y ago

I worked for a company that moved a major product from being manufactured in Canada to Mexico. At the meeting where everyone was laid off the manager had the nerve to tell people they are moving the product because they estimate they can save 5%-10% of the manufacturing cost. 5 years later manufacturing was moved back to Canada after it ended up being more expensive and the quality was lower. OTOH there was another product that was successfully built in China but it involved a complete redesign and was essentially a different product. There's definitely more to this than meets the eye and the decisions weren't always motivated by pure economics. Sometimes managers decided to move something to China just because everyone was doing it and they were under pressure to do so. Not because it was the right thing for their business. Managers making bad or short term decisions isn't exactly a new thing, their incentives/motivation varies.

allengeorge 10y ago
Bombardier?
- deleted 10y ago
  [deleted]
- YZF 10y ago
  Even though this was 10 years ago it's probably still confidential. This was a Canadian company acquired by a US company which then went through a series of "cost cutting" measures.
Spooky23 10y ago
That's amazing. 5-10% is a really small savings. When people here eye roll union guys they should think about that. I bet the executive bonus plan accounted for 5% of COGS.
- adrianN 10y ago
  5-10% is a pretty big saving if your profit margin isn't all that big.

dredmorbius 10y ago

NB: it's "GE", not "G&E".