Wednesday, May 18, 2011

Manufacturing Back to America

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I found this article very hopeful for American jobs. I hope these companies do bring manufacturing back to the U.S. What are your thoughts on this?
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4 comments:

  1. Chris DendrinosMay 18, 2011 at 1:37 PM

    Interesting article. I like the recommendation of encouraging companies to think very long term. Labor arbitrage is disappearing and if the trend of increasing labor costs in China continues it will not be cheaper to produce there much less ship back to the U.S in 5 years. Furthermore, with increasing costs of oil shipping prices will increase making the option even less economically sound. I say keep it in the U.S if it makes long term sense.

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  2. EMeisheMay 18, 2011 at 6:00 PM

    I agree with Chris's and the author's points that dwindling labor arbitrage and high or uncertain oil prices provide strong incentives for multinationals to produce at home. However I am skeptical of some of the predictions and believe there will be greater differences in labor costs than the author accounts for.
    If real wages equalize then consumption and would move towards equality and the world cannot sustain billions of American lifestyles. Someone somewhere will take less money and if possible companies will hire them to lower costs.

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  3. UnknownMay 18, 2011 at 11:26 PM

    I think the article made an interesting point in that there are some manufacturing that can never be brought back because the supply chain is gone. I thought that was a good point. i think we should bring back what we can. I think that outsourcing sometimes is only cheaper in the short run. I like this long term outlook which I think gets clouded sometimes in the quest for money now.

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  4. Laura KochMay 19, 2011 at 1:14 PM

    On board with Eric and Chris, as China develops economically, labor will demand higher wages. Increasing transportation costs may also call overseas manufacturing into question. I know that transportation is negligible in high production goods, but with increasing eco-conscious minds, who knows?

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