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A bus - because of the issues with shipping is something worth building not "too far" from where used. There is value in scale manufacturing so it won't be eve
by bluGill 1y ago
A bus - because of the issues with shipping is something worth building not "too far" from where used. There is value in scale manufacturing so it won't be every city, but making buses for a different continent probably isn't right either.
Note that engineering can be done in one location for multiple factories.
- bombcar 1y agoThe cost to ship a bus anywhere in the world approaches the cost of shipping a container - $2 to 10k probably. A tiny fraction of the price.
- bluGill 1y agoThat is still a lot of money. There is only so much scale before you want a seperate factory anyway and shipping is a consideration then.
- myrmidon 1y agoSure, but if those $10k shipping costs get you labor at a quarter of the price, I don't think the financials ever become favorable for high-wage countries like the US (average salary in urban China is <$20k/year). Even in much more highly automated industries you have a shift towards lower wage regions (see eastern europe automotive industry as an example) because you still need labor to build and maintain the factories at the very least.