Production returning to the USA!

[Local2ED]

The tide is turning, You can only screw your workers for so long. Lets hope this is the start of China unionizing, Reminds one of how unions came

be in America.http://finance.yahoo.com/news/Companies-brace-for-end-of-apf-2437567795.html?x=0

[tonkovich]

this news seems... to good to be true?

It's good news for the chinese workers. Obviously the displaced jobs won't go to the US, they will go to the next cheap labor market. China has been outsourcing some work to Africa for years, I assume they will increase their outsourcing as their labor costs increase. This is similar to what japan experienced about 40 years ago.

Increased Chinese labor costs, in addition to their agree mention to let their currency float should result in higher consumer prices in the west (which might not be a bad thing).

[tonkovich]

Originally Posted by Craig

It's good news for the chinese workers. Obviously the displaced jobs won't go to the US, they will go to the next cheap labor market. China has been outsourcing some work to Africa for years, I assume they will increase their outsourcing as their labor costs increase. This is similar to what japan experienced about 40 years ago.

Increased Chinese labor costs, in addition to their agree mention to let their currency float should result in higher consumer prices in the west (which might not be a bad thing).

gee, what will walmart do now? i'm going to be up all night worrying about them. those poor waltons - let's hold a bake sale for them.

Originally Posted by tonkovich

gee, what will walmart do now? i'm going to be up all night worrying about them.

Walmart will do just fine, their primary advantage is that they control the entire supply chain. Their prices have more to do with cutting out most of the distribution "middle men" than buying goods from china. You will probably see more in pact on high end goods, computers and tv sets, with major componets made in china.

[tonkovich]

Originally Posted by Craig

Walmart will do just fine, their primary advantage is that they control the entire supply chain. Their prices have more to do with cutting out most of the distribution "middle men" than buying goods from china. You will probably see more in pact on high end goods, computers and tv sets, with major componets made in china.

actually, walmart dictates prices to its suppliers, and has lately tried to get lower prices by taking over transportation entirely and, with some "funny" math, reducing prices, er, disproportionately, we might say. which will affect the suppliers own economy of scale, when it comes to transportation costs to non-walmart retailers. there's articles all over the business pages from may of this year about this latest quest for retail domination. anyway, they'll probably make factories move to some other third world hellhole, just to make a few more bucks. one must never be responsible or moderate in business, i guess. otherwise, those hardworking walmart children might drop on the forbes 100.

Originally Posted by tonkovich

actually, walmart dictates prices to its suppliers, and has lately tried to get lower prices by taking over transportation entirely and, with some "funny" math, reducing prices, er, disproportionately, we might say. which will affect the suppliers own economy of scale, when it comes to transportation costs to non-walmart retailers. there's articles all over the business pages from may of this year about this latest quest for retail domination. anyway, they'll probably make factories move to some other third world hellhole, just to make a few more bucks. one must never be responsible or moderate in business, i guess. otherwise, those hardworking walmart children might drop on the forbes 100.

Yup, I think that's what I just said. Do we agree that these production jobs will not return to the US?

[Hatterasguy]

Originally Posted by Craig

It's good news for the chinese workers. Obviously the displaced jobs won't go to the US, they will go to the next cheap labor market. China has been outsourcing some work to Africa for years, I assume they will increase their outsourcing as their labor costs increase. This is similar to what japan experienced about 40 years ago.

Increased Chinese labor costs, in addition to their agree mention to let their currency float should result in higher consumer prices in the west (which might not be a bad thing).

Yeah thats about how I see it, this really isn't new news.

China has been making inroads into Africa for years. I suspect you will see some military action in Africa in the next 10-15 years to stablise it, than the factory's start to get built.

[75Sv1]

Originally Posted by Hatterasguy

Yeah thats about how I see it, this really isn't new news.

China has been making inroads into Africa for years. I suspect you will see some military action in Africa in the next 10-15 years to stablise it, than the factory's start to get built.

Yeah, like Darfur. Chinese sent supplies to the one controlling the oil.

'From my experiance most Indians that can leave India because they can make a lot more money here. In my area I'm seeing a huge influx of Indian immigrants. '

Yes, I am well aware that they make about 5 times here, what they would there. The cost of living over here, is equal or possibly a lower standard of living for them. Still, its a cheaper source of labor for engineers etc. to an extent. Some of that is also tied to trade aggrements, or under the table trade agreements. You higher my workers in your country, you can build a plant there.
Tom

The article said;

"Many companies are striving to stay profitable by shifting factories to cheaper areas farther inland or to other developing countries, and a few are even resuming production in the West."

Not exactly a trend to move to higher cost labor markets, is it?

Regarding ford, as you said; nothing happens overnight. I understand that everything looks like a nail when you're carrying a hammer, but you should take a trip to Detroit and take a long look.

[raymr]

Lots of things can be made more efficiently by automation. Such factories, with fewer and more skilled workers, can be set up anywhere. As such, production will move closer to the end consumer, because transportation costs, i.e. fuel for big ships, will cut deeper into profit margins.

Originally Posted by raymr

Lots of things can be made more efficiently by automation. Such factories, with fewer and more skilled workers, can be set up anywhere. As such, production will move closer to the end consumer, because transportation costs, i.e. fuel for big ships, will cut deeper into profit margins.

Absolutely, but you can be sure that American unions will fight that trend every step of the way.

[Kuan]

I've always purchased high quality and as local as possible whenever I could afford it. Food, guitars, bicycles, audio equipment, etc. I've never been disappointed.

Local -> US -> German -> Other.

[Crazy_Nate]

Originally Posted by Kuan

I've always purchased high quality and as local as possible whenever I could afford it. Food, guitars, bicycles, audio equipment, etc. I've never been disappointed.

Local -> US -> German -> Other.

I'm of similar mentality. Easy, isn't it?

You just can't impulse buy...gotta do your research

[Pavka007]

Guys I don't wanna spoil your dreams here but the "new" China is called India, even less paid workers but much better educated.