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I wish we could fix whatever prevents this from happening at scale in Mexico, too (with some high value production in the US and potentially Canada as well, and

by rdl 4y ago

I wish we could fix whatever prevents this from happening at scale in Mexico, too (with some high value production in the US and potentially Canada as well, and maybe some other supplies coming from the elsewhere in the Americas.). I wonder if it is infrastructure, regulation, labor, or what.

arcticbull 4y ago
I remember seeing a chart a while back that said the actual cost of manufacturing in China is roughly the same as in the US, one has much lower labor costs and the other much lower energy costs. At the time at least it was posited the benefit of China manufacturing was co-location of suppliers and shorter supply chains. edit: [1] lists a BCG report from roughly when I was thinking and references a slightly earlier Bloomberg article [2]. Personally, I think China just has much better infrastructure, - in general - and specifically manufacturing, export and logistics. There's also momentum. [1] https://www.sellerlabs.com/blog/chinese-manufacturing-affordable/ https://www.sellerlabs.com/blog/chinese-manufacturing-afford... [2] https://www.bloomberg.com/news/articles/2014-04-25/china-vs-dot-the-u-dot-s-dot-its-just-as-cheap-to-make-goods-in-the-usa https://www.bloomberg.com/news/articles/2014-04-25/china-vs-...
- pclmulqdq 4y ago
  I doubt that a modern American worker will give you much higher quality than a Chinese worker, and the American will be very expensive.
shapefrog 4y ago
> labor You may think a Mexican (or a Canadian) is a cheap / poor worker - but that is simply because you can not comprehend small wage numbers.
- DiogenesKynikos 4y ago
  Chinese GDP/capita is larger than Mexico's now, and wages probably reflect that. China is no longer as attractive to manufacturers as a low-wage platform. Its advantages are now more about the local supply chain, good infrastructure and local expertise.

by rdl 4y ago

arcticbull 4y ago

I remember seeing a chart a while back that said the actual cost of manufacturing in China is roughly the same as in the US, one has much lower labor costs and the other much lower energy costs. At the time at least it was posited the benefit of China manufacturing was co-location of suppliers and shorter supply chains. edit: [1] lists a BCG report from roughly when I was thinking and references a slightly earlier Bloomberg article [2]. Personally, I think China just has much better infrastructure, - in general - and specifically manufacturing, export and logistics. There's also momentum. [1] https://www.sellerlabs.com/blog/chinese-manufacturing-affordable/ https://www.sellerlabs.com/blog/chinese-manufacturing-afford... [2] https://www.bloomberg.com/news/articles/2014-04-25/china-vs-dot-the-u-dot-s-dot-its-just-as-cheap-to-make-goods-in-the-usa https://www.bloomberg.com/news/articles/2014-04-25/china-vs-...

pclmulqdq 4y ago
I doubt that a modern American worker will give you much higher quality than a Chinese worker, and the American will be very expensive.

shapefrog 4y ago

> labor You may think a Mexican (or a Canadian) is a cheap / poor worker - but that is simply because you can not comprehend small wage numbers.

DiogenesKynikos 4y ago
Chinese GDP/capita is larger than Mexico's now, and wages probably reflect that. China is no longer as attractive to manufacturers as a low-wage platform. Its advantages are now more about the local supply chain, good infrastructure and local expertise.