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In order for this to be effective, these factories need to be able to produce at a desirable profit. The reason so much manufacturing drained out of the US in t
by 11thEarlOfMar 3y ago
In order for this to be effective, these factories need to be able to produce at a desirable profit. The reason so much manufacturing drained out of the US in the first place was corporations seeking improved profits. That's not to say many won't succeed, but we need to ensure that global competitiveness is imbued into these operations. Southeast Asia and India remain inexpensive.
- FrustratedMonky 3y agoDidn't TSMC say that its new US factory would be 30% more expensive. US labor being the problem.
- bsder 3y agoA mere 30% more so that job is here instead of China is a bargain--especially for something that has loads of national security implications.
- FrustratedMonky 3y agoNo doubt. I should say, 30% non-judgmentally. It is worth it for other reasons.
- UncleOxidant 3y agoYep, this is why re-shoring manufacturing to the US is (and will be) inflationary. For about 30 years we were exporting inflation to places like China.
- Clubber 3y agoI think this is accurate. I also think the EPA had a lot to do with it as well.
- Axsuul 3y agoGeopolitical risk is a thing too. Making less on profit now offsets the potential disruption on all exports if China were to fight a proxy war with the US.
- linuxftw 3y agoCompanies didn't need to make extremely better margins to offshore. They just needed to make enough to enrich the executive team.