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It makes sense that this is possible. It's a very high volume item, with limited parts. The raw materials are not unique to any one location. If you have the ca
by s1mon 1y ago
It makes sense that this is possible. It's a very high volume item, with limited parts. The raw materials are not unique to any one location. If you have the capital to invest in a highly automated production line (which I'm sure cost many million USD), you will eventually get the ROI and the costs will be similar in many locations around the world. Labor costs are a small portion of the COGS (cost of goods sold). If most of the market is in the US, then shipping cost savings probably outweigh the higher labor and real estate costs. Energy costs and raw materials are likely similar enough to be a wash.
Contrast this with consumer electronics, especially new products. Those have huge benefits from the concentration of the supply chain and the agility of the supply chain in Southern China. That doesn't exist in the US.