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You absolutely can build competitive furniture products at US wages. Companies that outsource overseas might only be seeing a 5% greater margin, but it's enoug
by linuxftw 4y ago
You absolutely can build competitive furniture products at US wages. Companies that outsource overseas might only be seeing a 5% greater margin, but it's enough to move production because that's money that goes straight to the executives.
- Workaccount2 4y agoI don't know about furniture, but in my industry where we have mechanical and electronic stuff built both domestically and in china, the difference in pricing is _insane_. It's not uncommon for things to be a difference of 10x, or 1000% more expensive to be built in the US. And it's not like these shops in the US are swimming in cash. The infrastructure (for manufacturing) sucks and the labor is much more expensive. And frankly the quality has been slipping a lot too, Chinese stuff is now often overall better quality at a fraction the cost. Perhaps if you are a megacorp and can arrange economical supply lines and leverage economies of scale, you can get down to small differences. But for small to medium production runs, China is just so overwhelmingly dominant.