Quote:
Originally Posted by GBBob
We are never going to be competative in meat and potatoes manufacturing of products with heavy labor as a major part of the product cost. Complex sewing garments, intricate detail on jewelry, etc are examples of areas that are gone forever. Even with China labor rates going up 5x over the last 2 years and with most factories supplying US Retailers providing health insurance and unioninzing, there is still too big a gap between the min wage here and what it can be made for there. Even if a US Company takes their manufacturing off shore, they do so to save millions of jobs that would be lost otherwise..Sales, Office, warehouse and distribution centers are positions that can't be outsourced, but that are saved by moving mnaufacturing to remain competitive. I'm sorry...you go to a Target Buyer with a Jacket made in the US at as cost of $30 or the same jacket...with quite possibly better quality that will cost Target $20 but is made in Vietnam....which one do you think they will choose?
One area that we should not lose ground jobs wise though is in the technological fields. We don't do a good enough job making it worth US Companies while not to move research labs and hi tech manufacturing off shore. Cheap labor does not drive the cost basis of a lot of these products and there is a proprietariness to them that allows for a comparison by retailers that isn't all about being the cheapest.
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Well put and that was the focus of my rant.. I used too wide a brush in painting. We drove out the manufacturing sector in the late 80's and everyone was told to get educated for high tech related and white collar jobs. Now those are being tossed and we are being told to invent the next big thing that will employ everyone. But the dynamics have changed the next big thing will also be done overseas. An economy where 3% of the people have 98% of the money is destained to fail.. My personal circumstances are that I am doing very well and my wife and I (thank god) have never been unemployeed so I am not talking my book here. I am afraid of the country our chidren and their children will inherit. I guess they all could bet Playa_Playas system for a living but I digress.