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relocate - to where exactly? There are two major manufacturing hubs in the world - east Asia and central Europe. Labor costs in manufacturing around the world
by thow-58d4e8b 5y ago
relocate - to where exactly?
There are two major manufacturing hubs in the world - east Asia and central Europe. Labor costs in manufacturing around the world have equalized to start at around $12/h. Slightly more in automotive. Average wage (whole economy) in Guangdong is ~$10/h. Labor cost in Poland is ~$13/h. The days of labor cost arbitrage are over
One can find cheaper labor, but it's always at the cost of worse infrastructure, missing supply chains or increased shipping costs. This is not pharma or silicon, where value per kilogram makes the cost of shipping is negligible. Manufacturing and assembly of heavy items like cars, trains or construction materials is nearly always near-shored
- LogonType10 5y agoI might be wrong about this but it seems like foreign cars are an exception to this trend, specifically Japanese cars sold in the United States. Do you know what factors might be at play here?
- glogla 5y agoThose are foreign designed but not necessarily foreign made. If you buy Honda Accord in the US, it is likely to com from a factory in Ohio. If you buy Toyota Corolla in EU, it is likely to come from factory in Turkey (or UK, but probably not anymore due to Brexit).