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Monumental Changes for Global Manufacturing

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Supply Network Guru
Re: Its time to Bring the Jobs Home.
tech4people   1/31/2013 4:07:51 AM


This is something which confuses me no end.

I have been tracking Labour Force Participation Rates,Demographic Trends as well as Average Wages very closely for the last three years.

And it became obvious(since the Beginning of 2011);that American Labour is now Competitive with Chinese Labour.

Especially thanks to both the One-Child rule in china and the fact that the Chinese tend to save more than the Americans;today's Young Chinese workers are much less likely to work for the same wages that their parents worked forin the 1980s and 1990s.

In contrast,Most Young Americans are overloaded with Debt(including College Debt burdens;where Collecting Agencies are starting to harass them bigtime) and their parents can't really help them out that much.

Still why have'nt we seen more Global Manufacturers come back to the US(&employ more)?

If you employ Americans today;you won't have to worry for Annual Payrises for atleast the next 3 years or so;In contrast the Chinese are over-demanding and want Pay-hikes every single Year!!!

It amazes me no end that its the Chinese Manufacturers which are now seriously looking at expanding in Southern parts of America as well as in Southern Europe.

Waiting desperately for the day when Cellphones come with the "Made in America" Tag.





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Supply Network Guru
Re: Its time to Bring the Jobs Home.
TaimoorZ   1/30/2013 5:16:55 PM

@Bolaji: I agree. Just as you said, the correction will take place and market forces will tend to bring the companies back to the US. With China becoming highly competitive, the low cost advantage has almost been lost and the economic incentive to invest in US manufacturing is actually there.

Bolaji Ojo
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Re: Its time to Bring the Jobs Home.
Bolaji Ojo   1/30/2013 4:59:24 PM

The pendulum indeed swung too far when we began moving manufacturing to low-cost regions but a correction is never too far off and one may be happening now in manufacturing. It is my belief that balance will be restored. Balance. Not a return to the old days and not entirely to the old ways.

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Supply Network Guru
Its time to Bring the Jobs Home.
tech4people   1/30/2013 2:47:11 PM


On the one side we see the Chinese no longer desperate for Factory Jobs

And on the other hand we see thanks to Record Levels of Youth Unemployment in America and Europe today more and more of our Kids are forced to Work Minimum Wage jobs (or in many cases even for Free);how about the Manufacturers start bringing those Jobs back home?

The Global Manufacturers don't need to pay more than USD 10-12 /Hour initially while our Kids learn the trade and then with experience they can earn more.

Sure,This won't amount to more than USD 25000-30000/annually but Something's better than nothing today.

Atleast that will be less kids who are stuck on Welfare(or dependent on Mom and Dad).

I am amazed no Global Manufacturers have'nt done more here(apple and Google's moves are hardly anything here).

Come back to America-You will find a Very receptive Labour Force here.

America is open for Business.

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