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Reshoring the US Economy

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pocharle
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Re: Reshoring
pocharle   12/17/2012 9:39:28 PM
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It should. I mean, you'll end up paying less with automation right?

Douglas Alexander
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Re: Reshoring
Douglas Alexander   12/3/2012 2:28:08 PM
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@Barbara...I watched a video on robots being used currently at Foxconn. The workers were taking the output from the robots and inspecting, trimming off or cleaning and stacking and then reloading the robotic supply bins. Who is being automated. Check out a Netflix called "Plug and Pray." It is an eye opener.

Barbara Jorgensen
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Reshoring
Barbara Jorgensen   12/3/2012 1:31:07 PM
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These cost analyses always fascinate me. There's no question that productivity should be a major factor in the equation. I wonder, though, if we are really comparing worker productivity minus automation or including automation? Methinks that chnages the equation considerably.

Douglas Alexander
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Re: It's not just about China and the USA
Douglas Alexander   12/1/2012 1:12:27 AM
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@pocharlie...good question. Does anybody reading these posts have any experience with contracting in Vietnam? How would you rate their expertise?

pocharle
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Re: It's not just about China and the USA
pocharle   11/30/2012 8:35:11 PM
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Vietnam? Really.

This might just be plain ignorance, but they have the capacity to create a manufacturing workforce to handle our demand needs?

TaimoorZ
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Re: It's not just about China and the USA
TaimoorZ   11/30/2012 3:47:30 PM
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@sharonstarr: I agree that China is not the only threat and other countries are becoming more powerful and are likely to pose threats too. I think the movement will be from one country to another and as the country develops, the price advantage will finish and it would no longer be attractive to produce anything in that academy. Countries like Vietnam will follow China till the point it's able to keep the costs low.

TaimoorZ
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Re: Can this be accelerated?
TaimoorZ   11/30/2012 3:32:33 PM
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@Douglas: Apart from the upward pressure on wages due to the addition of medical, healthcare benefits etc, another reason is the rising inflation. The cost of living is going up in China which would impact the minimum wage rate as employees demand higher wages.

sharonstarr
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It's not just about China and the USA
sharonstarr   11/30/2012 12:54:15 PM
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These are interesting findings, but they are limited.  One has to assess the global dynamics of reshoring to gain any insight about the potential impact on the USA.  Many global companies that are finding it less advantageous to operate in China are moving their operations to other Asian countries, such as Vietnam, where labor rates are lower and regulations less onerous.  IPC conducted a study of reshoring in the electronics industry earlier this year and found that much of the manufacturing returning from Asia is going to Mexico. The study is titled "On-Shoring in the Electronics Industry:Trends and Outlook for North America". Information about it can be found at ipc.org.

Mr. Roques
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Re: Added costs
Mr. Roques   11/30/2012 11:55:42 AM
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Although, we must remember that wages in those states are so low because: there are no jobs. Once a company gets there, and another, those employees will start to compare themselves, but not to China, but to the other states.

That's something that is always going to happen.

If it's not the US, and its not China... which country could take advantage of the situation? Any in the western hemisphere?

Douglas Alexander
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Re: Can this be accelerated?
Douglas Alexander   11/29/2012 9:10:25 PM
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@SP...I think things are moving that way. China needs to create huge incentives to get people to save less and consume more. That means that the government will be doing their level best to provide a sense of security for the entire population. Social Security, Helath Care, Pensions, and the like are all on the table including a redistribution of the 3.6 trillion dollar surplus that would fund various programs to encourage blue collar workers to pursue their dreams as well. If the standard of living is going to rise in China, it will rise universally and that means everyone's wages will go up and continue to go up as long as the GDP supports the numbers. With 25% debt to GDP and the multi-trillion dollar surplus, China is on track for at least 8%-10% growth year-over-year. The middle class will expand via blue collar workers enjoying their share of the development. 2020 will still be a developing time for China, but by then, they will have wages that will not be competitive with the US as we have a 16 trillion dollar deficit today, a trade imbalance that is growing, and a jobless rate that is scarey of the map. with a 103% debt to GDP, we may have already passed the point of no return unless we get the jobs back, increase our productivity significantly, and get rid of politicians and lobbyist working for the self-serving corporations. We got what it takes, but the government's partisan policies and corporation friendly biases are taking what we got. The rich get richer and the gap is widening every day.

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