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That's my thought about it too. I'm not convinced labor being too expensive in the US was the reason manufacturing left in the first place. I think it might hav
by onetimeusename 3y ago
That's my thought about it too. I'm not convinced labor being too expensive in the US was the reason manufacturing left in the first place. I think it might have just been a cost cutting move to manufacture in Asia which was done more for short term financial gain and designed by financial types. But the loss in talent and knowledge is very costly long term.
- Incipient 3y agoCost cutting by moving to Asia is due to labour. Possibly a bit of cheaper environmental regulation too. But what else is there other than labour?
- topkai22 3y agoTariffs and other restraints on trade meant to draw companies in in exchange for “access to the market.” Although cost reduction was a huge factor.
- fnordpiglet 3y agoThis article discusses why the lack of industrial supply chains locally really hurts - the availability of basic parts like custom screws without lead time is exemplary of the problem. The entire chain of production exists in Asia and not in America. https://www.nytimes.com/2019/01/28/technology/iphones-apple-china-made.html https://www.nytimes.com/2019/01/28/technology/iphones-apple-...
- Gibbon1 3y agoPart of it is running a manufacturing plant makes your typical Ivy League MBA's head hurt.
- api 3y agoThree things: 1. Even slightly cheaper labor matters at scale. 2. Lax environmental regulations make materials, disposal, and energy cheaper (which is really just dumping externalities on others). 3. China for one subsidizes its industries. Corporations can’t generally compete with governments, especially big ones with their own sovereign currency.