Will the manufacturing go back to America?

[Ishaq]

Will manufacturing ever go back to the US?

At what point, will transnational corporations deem manufacturing their products in China actually begins to hurt them, because such disinvestment erodes the spending power of their main customer base, that is North Americans?

Alternatively, at what point will the cost of labour in China rise to a level where it is no longer viable to continue manufacturing operations in the country?

 

[LatFlare]

When westerners deem it ok to work for $1 a day with no benefits then the manufacturing jobs will come back.

 

[MicroBrew]

Will manufacturing ever go back to the US?

At what point, will transnational corporations deem manufacturing their products in China actually begins to hurt them, because such disinvestment erodes the spending power of their main customer base, that is North Americans?

Alternatively, at what point will the cost of labour in China rise to a level where it is no longer viable to continue manufacturing operations in the country?

Multinationals by themselves will never bring manufacturing based on the notion their jobs will put money into American pockets, because for a Mfg to have faith this plan will work they would need to know that their competitors and other Mfgs will follow suit. Only higher cost of doing business overseas and or government carrots would bring them back.

Some companies did move manufacturing back.

 

[Dolomite]

Only higher cost of doing business overseas and or government carrots would bring them back.

Some companies did move manufacturing back.

Word.

 

[Shadess]

When robots will do 99.99% of the work and if there is plenty of power available at competitive prices.

 

[sub_thug]

It really depends on the product. Some industries have huge shares of production in the United States, such as furniture development. The best furniture is made in North Carolina, no questions asked. Those comfy Lay-Z-Boy chairs, leather couches, and quality wooden furniture all comes from there. Of course, farming is an American industry. The US produces more than half the world's food. It's all about the specific industry.

 

[Shadess]

Of course, farming is an American industry. The US produces more than half the world's food. It's all about the specific industry.

US produces more than half of he world's food? Couldn't google verify this quickly, got a source for that?

 

[Higus]

Some manufacturing is coming back. It really depends on the industry.

 

[Deleted member 159002]

Will manufacturing ever go back to the US?

At what point, will transnational corporations deem manufacturing their products in China actually begins to hurt them, because such disinvestment erodes the spending power of their main customer base, that is North Americans?

Alternatively, at what point will the cost of labour in China rise to a level where it is no longer viable to continue manufacturing operations in the country?

I don't manufacturing will return out of concern for American consumers' spending power, but manufacturing has already started to return due to rising energy costs and rising wages in the developing world.

 

[IDL]

I don't manufacturing will return out of concern for American consumers' spending power, but manufacturing has already started to return due to rising energy costs and rising wages in the developing world.

Yeah the policies that pushed globalization were not done to benefit the middle class in any country.

 

[Uchi Mata]

When wages have equalized globally (or energy costs risen so high) that the benefit to firms in terms of reduced wage expense are outweighed by the increased cost of transporting good halfway around the world all manufacturing will be done somewhat locally. We're a long way from that. Hell, if Africa could get its shit together it would become the next manufacturing hub because I have to think their wages would be even lower than southeast Asia.

 

[panamaican]

When wages have equalized globally (or energy costs risen so high) that the benefit to firms in terms of reduced wage expense are outweighed by the increased cost of transporting good halfway around the world all manufacturing will be done somewhat locally. We're a long way from that. Hell, if Africa could get its shit together it would become the next manufacturing hub because I have to think their wages would be even lower than southeast Asia.

China has already started outsourcing there. It's only a matter of time...

 

[MeatheadMike]

Yeah the policies that pushed globalization were not done to benefit the middle class in any country.

What globalization policies are you referring to?

And how are increased wages for Chinese workers not beneficial to the Chinese working class?

 

[7437]

Some manufacturing is coming back. It really depends on the industry.

this. I work in a factory that makes cement boards. they would be super expensive to ship, so we make them in the USA

 

[Problem Child]

Fast food assembly is the new manufacturing. In this arena, America is #1.

 

[Strychnine]

Well, I don't really know if we'll see a ton of manufacturing like in the olden days. Look at the TPP (Trans Pacific Partnership) deal that's being secretly negotiated with our governmental higher ups. The U.S. will put in place a trade agreement with countries like Vietnam, which has a 28 cents an hour (U.S.D.) minimum wage.

 

[ChainFlow]

Well, I don't really know if we'll see a ton of manufacturing like in the olden days. Look at the TPP (Trans Pacific Partnership) deal that's being secretly negotiated with our governmental higher ups. The U.S. will put in place a trade agreement with countries like Vietnam, which has a 28 cents an hour (U.S.D.) minimum wage.

How is the TPP getting so little coverage? I only see anything about it on tech sites concerned with the IP law crap shoehorned into it.

 

[UpaLoompa]

The US accounts for 18% of manufacturing in the world (second to 18.7% by China). So we're down in percent (prior to 2004, when China began reporting numbers, we were accounting for 30% of manufacturing but that's inflated) but actually manufacturing output is higher.
Per capita value added by US manufacturing in the US is considerably higher than in China (but behind Japan and Germany in that metric).

Basically manufacturing is still doing fine. As mentioned we're also still a major agricultural producer.

 

[Strychnine]

How is the TPP getting so little coverage? I only see anything about it on tech sites concerned with the IP law crap shoehorned into it.

I honestly think that corporations are shoveling $$$ at people to keep their mouths shut. The only person that I know of that speaks about it with any consistency is Ed Schultz. Once it goes through, it'll be too late.

If people thought NAFTA was bad, the TPP is NAFTA on HGH, Danabol, and Testosterone.

 

[Ishaq]

When wages have equalized globally (or energy costs risen so high) that the benefit to firms in terms of reduced wage expense are outweighed by the increased cost of transporting good halfway around the world all manufacturing will be done somewhat locally. We're a long way from that. Hell, if Africa could get its shit together it would become the next manufacturing hub because I have to think their wages would be even lower than southeast Asia.

I'd love for the manufacturing to come here.

Unfortunately, South Africa is caught in that middle income trap. Unskilled labour costs too much, so we can't compete with the Far East on that front and our populace isn't educated enough to compete in the high tech, innovative end of the market either.

We're stuck in a rut.