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This started well before the Chinese were into manufacturing, clear back in the 70s with cheap Japanese imports. Then it moved to Taiwan, and now China. Honestl
by zrobotics 8y ago
This started well before the Chinese were into manufacturing, clear back in the 70s with cheap Japanese imports. Then it moved to Taiwan, and now China. Honestly, wages in the US have been too high to avoid this for quite a long time, and the only way I see consumer manufacturing moving back is through increased automation.
Unfortunately, I see no realistic way to bring back the kind of manufacturing jobs in the same numbers we had in the 50s-70s. And nobody wants to work them anyway, a family friend runs a small company making material handling equipment, and he is always short of assemblers. At one point he was starting assemblers higher than welders, and still struggled. We're fighting too many years of telling kids to avoid the trades and go to college. I can't find the link, but NPR recently ran a story about innovative schools that are starting maker spaces. All schools used to have that, it was called shop class.
These moves from the trump administration seem to me like closing the gate after the horses have already bolted, and stand to harm what manufacturing jobs we have left as well as pissing off our allies.
- IanDrake 8y agoI don’t disagree with most of your analysis. Especially your point about automation. Now imagine a world where the US can make things again at a cost competitive rate due to automation. Ok, now look at how those goods would be taxed overseas... We still would have an export problem due to other country’s protectionist tariffs. The point of the trade negotiations is to get better terms for US exports. This is critical as we come to a turning point in manufacturing.
- zrobotics 8y agoThe trouble, as bunnie points out in the article, is that the tariffs apply to things like components, not finished assemblies. So why would I locate a SMD assembly line in the US if my raw materials are higher, when I can also assemble the product overseas and avoid these tariffs?
- IanDrake 8y agoAs I stated elsewhere, consider this as a very dynamic moment in time. Things are changing quickly. I also agree with your analysis of the current situation, I just don’t believe the current situation will be as it is for long.