ERD50
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I found this interesting.
Some manufacturing heads back to USA - USATODAY.com
When we were sending a lot of production overseas, it was so easy for someone to calculate the effect of lower wages to the penny. There was no way to calculate these other factors, though we all knew they were real. So the guys with the definitive powerpoints won (and probably should have in most cases). But if CEOs are recognizing these issues, it will mitigate the wage deltas to a degree.
-ERD50
Some manufacturing heads back to USA - USATODAY.com
"I think we're going to start to see a slowing of lost jobs, and we'll see some jobs coming back," says Simon Ellis, an analyst for IDC Manufacturing Insights. ...
There are myriad reasons for the shifts, often called "onshoring" or "reshoring." Chinese wages and shipping costs have risen sharply in the past few years while U.S. salaries have stayed flat, or in some cases, fallen in the recession. ...
Several cite the drawbacks of tying up valuable capital in huge overseas shipments, and want to bring assembly closer to engineers, suppliers and customers, concerns that mounted as makers slashed costs in the downturn. Others are simply weary of midnight phone calls — and multiple annual trips — `to Asia.
"A lot of companies who have gone there to take advantage of cheap labor are starting to tell us that if you (calculate) total ... cost and don't just look at wages, it's actually not worth it," says Jeremy Leonard, consultant for Manufacturers Alliance/MAPI, an industry-funded research group.
When we were sending a lot of production overseas, it was so easy for someone to calculate the effect of lower wages to the penny. There was no way to calculate these other factors, though we all knew they were real. So the guys with the definitive powerpoints won (and probably should have in most cases). But if CEOs are recognizing these issues, it will mitigate the wage deltas to a degree.
-ERD50