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The robot tech might be developed in the US (or where ever) but is still built in China. That makes sense, because it's used in China. And as expertise in build
by stonemetal 15y ago
The robot tech might be developed in the US (or where ever) but is still built in China. That makes sense, because it's used in China. And as expertise in building stuff concentrates in China all they need to do is keep quality high, keep costs low, and maybe keep an eye on human rights, and they'll keep the jobs.
If we assume raw materials are bought on the global market (so same price in the US and China), then the only cost variables are labor and shipping to market. Once Robotics drives the difference in labor costs below the difference in shipping costs robots in the US makes more sense than laborers in China. There is an inflection point even if you assume the use of robotics in China.
- 18pfsmt 15y agoI believe you are missing regulatory compliance costs, which are significant in the US. I'm not quite sure how robotics alters that variable though.
- stonemetal 15y agoThey help some but it doesn't go away 100%. Robots mean lower worker regulatory costs, but environmental regulation costs still count against the US.
- DanBC 15y agoNo benefits of scale for huge Chinese manufacturing ordering more raw materials? No benefits from China holding large reserves of raw materials (eg rare earth metals)? No benefits from Chinese dock workers getting paid a lot less than US dockworker? (See also transport from docks to factories; from factories to docks; from docks to markets.)