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  • Manufacturing Reurning to the USA

    I was floored to read this. Instead of offshoring manufacturing to the Asia companies are bringing jobs back! They call it onshoring or reshoring or backshoring.
    Its a good trend to have

    http://www.kanabco.com/vmsbbs/index.php?topic=563.0

  • #2
    Interesting a sounds good. However, these lines leap from the page:

    The trend ... is gaining momentum as a weak U.S. dollar makes it costlier to import products from overseas.
    So, when the dollar recovers that will happen? Will outsourcing begin again?

    Manufacturers are also counting on White House jobs incentives
    What are these government incentives? Propping up an uncompetitive company with government funds is foolish.

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    • #3
      I call BS.

      First off, the source is the Wall effing Street Journal, owned by Robert Murdoch.

      Second, the article offers no statistics to back up its claim, just a few anecdotal stories. You could just as easily cherry pick stories about manufacturing companies that are still laying off or outsourcing.

      Comment


      • #4
        Originally posted by Tony Ennis
        So, when the dollar recovers that will happen? Will outsourcing begin again?
        I was just talking to a guy today who imports electronic components from China. He was telling me that on his last visit he found out that the Chinese workers are starting to organize and demand higher wages (good for them!).

        Also apparently their is some factor that is causing rural Chinese who typically worked cheap in the factories to return to the country for farming jobs. Not sure what that factor is but the factories are having a hard time meeting demand and lead times for some specialty components are up to 20 weeks.

        So, restricted supply plus increased labor costs means that the era of cheap off-shoring may be coming to end -- at least until some other emerging economy takes their place.
        Lee

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        • #5
          Originally posted by MTNGUN
          I call BS.

          First off, the source is the Wall effing Street Journal, owned by Robert Murdoch.

          Second, the article offers no statistics to back up its claim, just a few anecdotal stories. You could just as easily cherry pick stories about manufacturing companies that are still laying off or outsourcing.
          So which paper would you believe if it ran there?

          Unlike most papers, the WSJ HAS to maintain credibility. If they make up a story, investors will find other news outlets, pronto. If they got the reputation of inventing, or skewing a storyline, people loose money.

          The retribution is almost instant. Tell me the wrong stuff, I don't buy your paper.

          Comment


          • #6
            Originally posted by smalltime
            So which paper would you believe if it ran there?
            The one that gave some actual numbers and statistics to back up their claim. The only jobs they list as coming back to the US are 10 in Florida and some vague "maybes" for Caterpillar. I'm not quite ready to break out the champagne.

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            • #7
              A recent WaPo article discusses labor unrest in China:

              http://www.washingtonpost.com/wp-dyn...l?hpid=artslot


              Originally posted by ldn
              I was just talking to a guy today who imports electronic components from China. He was telling me that on his last visit he found out that the Chinese workers are starting to organize and demand higher wages (good for them!).

              Also apparently their is some factor that is causing rural Chinese who typically worked cheap in the factories to return to the country for farming jobs. Not sure what that factor is but the factories are having a hard time meeting demand and lead times for some specialty components are up to 20 weeks.

              So, restricted supply plus increased labor costs means that the era of cheap off-shoring may be coming to end -- at least until some other emerging economy takes their place.

              Comment


              • #8
                Oh no... poor kids in china have to work,,,,,, the horror!

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                • #9
                  Relax folks, Annex Manufacturing just announced that they are shutting down the plant in Lyons NY, 125 jobs are headed to china! The "poor Chinamen" will have plenty of work.

                  This on the heals of NY state helping Annex buy the plant from Parker, then then turn around and close down their new plant.
                  This product has been determined by the state of California to cause permanent irreversible death. This statement may or may not be recognized as valid by all states.
                  Heirs of an old war/that's what we've become Inheriting troubles I'm mentally numb
                  Plastic Operators Dot Com

                  Comment


                  • #10
                    Originally posted by smalltime
                    If they make up a story, investors will find other news outlets, pronto. If they got the reputation of inventing, or skewing a storyline, people loose money.

                    The retribution is almost instant. Tell me the wrong stuff, I don't buy your paper.
                    Uh .... no, that's not how it works.

                    The typical WSJ subscriber is a wealthy conservative. Wealthy conservatives want to hear "news" that reinforces their conservative, pro-greed views.

                    For those who aren't aware, Robert Murdoch, the owner of the Whore Street Journal, also owns the Faux News channel, a conservative mouthpiece if ever there was one.

                    Where do I get my news ? ONLINE ! ! ! And it just so happens that I ran across this article online today:

                    1100 American manufacturing jobs lost as Whirlpool moves production to Mexico

                    But, but, but...... Robert Murdoch's mouthpiece just said that manufacturers were returning to the United States ? Someone forgot to tell Whirlpool ?

                    Comment


                    • #11
                      Nice article, and perhaps a glimmer of hope for American industry, but wishful thinking in the long term. As previously mentioned, as the Dollar recovers we will likely see a reversal of any trend like this, if it truly exists. Organization of labor in China is also wishful thinking, in my opinion. Folks there don't enjoy the freedoms we have in America. In China when workers don't do as the government tells them to the tanks are rolled out along with the soldiers. The Chinese don't seem to be as concerned as we are with world opinion.
                      If stimulating the return of manufacturing and America's industrial base is to be hoped for the first thing that has to happen is to put the cost of American goods on equal footing with those imported from rest of the world.
                      Here in America we have regulations and standards for everything including wages, safety and pollution all of which cost domestic companies money and which overseas companies aren't required to meet. Personally, I'm not one for government intervention or taxation as I believe they already have too much control in areas where they don't belong and fail miserably at whatever programs they legislate and control. Social Security, Medicare and the recent misdeeds of the Minerals Management Service are only a few examples of such failures, but that's another subject.
                      In this case though, taxation of any import which is produced in a country which doesn't meet the same requirements that American companies are required to meet might be the answer. A tax such as I propose which brought the cost of an imported item to an equivalent with a domestically produced item would allow American companies to more easily compete. This would bring industry back home and help resolve our current unemployment issues and the tax revenues could be used to pay down our tremendous and rapidly growing debt. Such a tax is not unprecedented if you remember the tax in Japanese motorcycles over 700 cc's when Harley Davidson was in trouble. Further, as a nation, if America is so serious about the environmental welfare of our planet (re: Global Warming hoax IHMO) and the well being of peoples in other countries we should embrace the opportunity to lift the rest of the world to higher standards for the environment and their citizens.
                      A tax such as I propose certainly makes more sense than a new bureaucracy for a Carbon Tax and Carbon Exchange which will do little to affect any substantial changes in "pollution", if one believes Carbon Dioxide to be a pollutant as it have been recently deemed, but will do a great deal to enrich the movers and shakers of Carbon trading while raising prices for consumers and driving more American companies overseas.
                      Last edited by firbikrhd1; 06-22-2010, 09:01 PM.

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                      • #12
                        FWIW... the name is RUPERT Murdoch.

                        He has an agenda, faux news chooses its stories to support that agenda, and simply does not even mention others that don't.

                        Some companies ARE bringing back jobs. OTHERS are just NOW finally pushing them over to china, which I have every hope will backfire on them quickly, as several factors are gonna hurt them.

                        1) labor problems and rising wages. This is not new, but it is likely being somewhat encouraged by the chinese government now, because they want a domestic economy. Can't have one if everyone works for nothing.

                        Time was when you literally could ignore the cost of labor, and nearly ignore materials, because hardly any labor was in them. "Not no more". Even 6 years ago, my former employer was getting a 5% to 10% cost increase on nearly every order.

                        2) slightly loosened currency policy... ANY float will hurt exports.

                        3) Energy costs on the way up..... that increases shipping costs.

                        4) chinese policy of a domestic economy..... domestic manufacturing takes away from exports. has to, unless more plants are built, and staffed. I predicted some years ago that foreigners would have to "bid" for factory time, and we may see that.

                        Don't get too excited, this isn't going to flood jobs back here. The best it can do is punish the companies that were last to rush over there.

                        The US has served its purpose of building the chinese economy, and is not needed anymore. The US is simply seen as a place that will buy until the money runs out, which, without manufacturing, it will. By that time the US won't be needed at all.
                        1601

                        Keep eye on ball.
                        Hashim Khan

                        Comment


                        • #13
                          Ummm, you guys do realize that if outsourced manufacturing comes back into the US, it's not likely that jobs will return? We manufacture more than we ever have, just have very few manufacturing jobs in part due to folks like me who spend their days writing software to automate processes.

                          Yup, I admit it: I'm paid to do stuff that keeps businesses from having to hire people...or need fewer people than they have now.

                          Anyway, it's cool that we can compete with bottom-of-the-barrel priced labor, but you really have to ask yourself if that's the kind of work you want for yourself or your kids.

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                          • #14
                            Suppose we invented a really clever robot that could do all the manufacturing? What would happen next?

                            I think we need to consider what to do when production requires very little labor.

                            - Bart
                            Bart Smaalders
                            http://smaalders.net/barts

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                            • #15
                              It was surprising that the last 60 Minutes said that the USA has manufactured more goods than anyone else for the last 110 years. Next year,for the first time ever in 110 years,a foreign country,China will slightly produce more than the USA.

                              I'm wondering what it is that we produce so much of???

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