Posted on 01/02/2014 8:56:06 PM PST by ckilmer
Boston Consulting Group (BCG) has been publishing research on this for the past 18 months or so. You can find their reports on their website. The white papers are free, although registration may be required, but well worth it as they provide specific details on the underlying forces behind reshoring of US manufacturing, which industries will be most affected and when, and which states and regions stand to benefit the most.
Good article, sent the link to the office for posting on our Face Book page.
Thanks ckilmer.
Hahahaha! I used to have a crew in that plant. It’s HUGE and harder to get in and out of than an airport. I was an HR staffer with a temporary company. One of the best paying jobs I’ve had in recent years and I only worked 3 days a week, but it was full-time.
amazing.
It’s really pretty damn predictable.
As soon as the cost of production + the cost of transportation outstrip the cost of the item........you look for ways to reduce those costs. Producing in China 10-15 years ago was enticing, paying people $10/day to build something that would sell for $500 retail here. Now, as Chinese want $100/day to build something that now sells for $500 retail, that margin is crap. Combined with the higher cost of transport, ouila.
As well, the cost of the move can be amortized (capitalised) over more than one year. The ‘hit’ then, affects the bottom line much less. This makes operations managers VERY happy, as most companies consider ‘long term’ to be the next fiscal quarter!
CHEAP ENERGY...
That is, and always has been, the key to industrialization.
And it is the bain of the liberal enviroNazi treehugger.
I believe it’s spelled voilà.
I'm glad they got jobs 'n no offense, but that looks like a state prison...
The offshoring isn't going to change until we restore the import tariffs.
The wage differential is too high. It trumps transportation costs. It trumps any alleged pressure to produce domestically. The bigger bonus checks offset the management headache of overseas calls.
Restore the import tariffs, and THEN you will have pressure to reshore.
We overlook a variety of unique spellings of that word here, wa-la, viola and now ouila. It’s just another part of the rich tapestry of FReeperdom.
They’re looking for the Golden Ticket in the Wonka Bars
Haha...You funny...
In many ways, yes.
I'll guess about 60% of the stand-up-all-day workers are women, though.
They're faster, cause fewer problems, and tend to keep a lot of the guys from getting into trouble, on the factory floor anyway.
Problem is, the pay sucks.
When you see a picture like that in America, the top wage earners are probably getting $12/hour, and probably half that crew is foreign born.
Forty years ago, working for a large corporate manufacturer was a ticket straight into the middle class.
That day is gone.
And not just here in America.
Manufacturing productivity doubles about every 15 years.
World wide, the total number of manufacturing employees has been steady or drifting down slowly for about 25 years.
these are not particularly pleasant places to work.
What about the government’s destruction of the value of the dollar?
Don’t remember the company, or the product, but some American firm recently lost an entire product run to faulty Chinese assembly/bad spec translation. In the long run, it was cheaper and safer to use American labor.
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