Quote:
Originally Posted by ramonajim
Biggest problem in your equation Bob is that labor cost often isn't the killer. The engineers I'm hiring in Shenzhen (and Guadalajara) really aren't that much cheaper than their US counterparts, and direct labor cost makes up a tiny fraction of the high tech products we build.
It's all about supply chain. 80%+ (by cost) of the components used originate in Asia. Buying them locally can remove 15% to 30% of the materials cost from our products.
And believe me - my sympathies are entirely with that guy (and the 83 others in his shoes), not myself.
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So in fact labor costs are the issue as 80%+ by cost of your components are not made in the US but in China. No doubt because it's too expensive to make them here.
- Peter.
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2021 Chevrolet Spark
Formerly...
2000 GMC Sonoma
1981 240D 4spd stick. 347000 miles. Deceased Feb 14 2021 
2002 Kia Rio. Worst crap on four wheels
1981 240D 4spd stick. 389000 miles.
1984 123 200
1979 116 280S
1972 Cadillac Sedan DeVille
1971 108 280S
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