China Isn't Being Displaced

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chipmonk
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Production Synthesizer
Re: Perceptions Vs Reality
chipmonk   2/6/2013 9:53:07 PM
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I think you got it backwards. I was NOT implying about large US Corp.s still outsourcing their Mfg. to China but THEMSELVES claiming that they are now doing it back in the US. Insread what I was saying is that it is their Agents in the Media / Academia creating an impression that much of outsourced manufcaturing was being brought back - for every real case ( e,g. some Lock Co. in the Mid West ) there have been hundreds of articles ( with Smoke and Mirror ) to create a FOG. As far as consumer electronics is concerned most chips and PCBs designed in the US are still being made in the Far East, assembled and tested in China.    

WaqasAltaf
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Supply Network Guru
Re: Perceptions Vs Reality
WaqasAltaf   2/6/2013 9:19:02 PM
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@ chipmonk

I don't get your point. How does one gain benefit if they are running a campaign about rumours of manufacturing shifting back to China and in actual they are manufacturing there ? These are large corporations that we are talking about who are manufacturing their goods in China and it is very difficult for them to hide this fact or impossible. 

WaqasAltaf
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Re: Perceptions Vs Reality
WaqasAltaf   2/6/2013 9:13:47 PM
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@ elctrnx_lyf

Google has to no reason to be pessimistic or consider China as an option because it is not involved in manufacturing. Secondly, Google runs on highly skilled labour and that is available in good supply in US due to advancement of technology there and availability of high quality education which produces the human resource that it needs.

WaqasAltaf
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Supply Network Guru
Despite higher freight costs
WaqasAltaf   2/6/2013 9:10:42 PM
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It is a disappointing truth for US and Europe that despite freight costs of shipping goods from China is higher due to a large distance, the goods produced in China remain cheaper after shipping than the locally produced goods. I believe the labour and legal compliance costs have risen so high (though good for the society) that it will now be a major leap backwards if they are reduced to make the region competitive when it comes to manufacturing.

chipmonk
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Production Synthesizer
Re: Perceptions Vs Reality
chipmonk   2/6/2013 10:42:59 AM
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I think what Ghemawat was trying to say at TED in a very roundabout way is that a lot of lying is going on about outsourcing to China in order to throw off the critics and thwart any popular / political blowback on its proponents. Every dollar of trade deficit with China works out as a # 3 negative imppact on the US economy. This has been going on for nearly 18 yers now with an annual deficit of $ 350 billion.

But so long as a limited few can reap the benefits of Outsourcing to China and use foreign tax shelters to hide it from the IRS they can keep buying any amount of Media and Academic hacks to create false impressions like massive "insourcing" back from China into the US.

elctrnx_lyf
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Supply Network Guru
Perceptions Vs Reality
elctrnx_lyf   2/6/2013 12:08:56 AM
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I do agree there is a lot of difference between the actual scenario and reality. As matter of fact there may not be many companies moving the manufacturing to onshore unless it really makes the final cost of the product less. But at the same time there are companies like Google who is bang about local manufacturing is trying to raise the value of the brand and consequently making people more optimistic about future and in turn increase sales.

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