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Manufacturing in the United States
Yep, it’s coming back.
https://www.nbcnews.com/news/all/boeing-slams-questionable-airbus-deal-make-bombardier-cseries-jets-alabama-n811381
This is sort of the really in your face version of it. Making airplanes is super important if you are a military super power. It’s how you project force around the globe. You can talk boots on the ground, but the boots gotta get there, and it can’t all be on boats. The airplane industry, as a result, is highly protected. But there’s a fair amount of money to be made by undercutting on margin especially via innovation, and high barriers can stop that only for so long. The classic end run happened in my childhood / teenage years with cars: stop imports with tariffs? Fine, we’ll just make them in country instead. And, generally speaking, in the South, where the unions aren’t strong. As in, they don't actually exist.
But that isn’t even the kind of manufacturing I had in mind. It’s an important and interesting development, but while I may be from Seattle, I feel approximately the same amount of loyalty to Boeing as Boeing felt to Seattle (which is to say, not very much).
The kind of manufacturing I have in mind is moving to the US from Elsewhere (mostly China) for two reasons.
(1) As the relative value of US and Chinese currencies adjusts to reflect massive changes in the Chinese economy (it’s a slow process, but it is happening), the benefit of moving manufacturing from the US to China has reversed. Basically, the China wage isn’t what it once was. And automation these days is amazeballs.
(2) If you can automate enough of a manufacturing process to reduce the cost of labor required to a tiny fraction of the value of the end product, you don’t give a fuck _where_ you make it, at least not in wage terms. It turns out, you can get the labor cost so low, that you care _more_ about shipping costs than labor costs. At that point, it makes a lot of sense to move closer to where you are going to sell the final product.
Finally, states, local governments, the national government and other entities often create enticing packages of tax incentives and other benefits to move a manufacturer to a given location, in hopes of getting a bunch of sweet, sweet jobs along with it. Generally speaking, corporations seem to be better at hiring people to assess these deals than the politicians who create them (or maybe they just care about the bottom line in terms of dollars more, while the politicians care more about the votes, and it is really us voters who need to Step Up Our Game). That’s a powerful incentive to move manufacturing back to the United States.
Why not move to some other place in the world, cheaper than China? Well, China is already locking down a chunk of the African continent, in terms of manufacturing capacity. Governance issues can’t be entirely ignored, either, because governance tends to determine quality of labor force and infrastructure, which US businesses tend to expect more out of than Chinese businesses.
So, yep, manufacturing is coming back to the United States. But don’t be thinking that’s going to involve a lot of jobs. Because it probably won’t.
https://www.nbcnews.com/news/all/boeing-slams-questionable-airbus-deal-make-bombardier-cseries-jets-alabama-n811381
This is sort of the really in your face version of it. Making airplanes is super important if you are a military super power. It’s how you project force around the globe. You can talk boots on the ground, but the boots gotta get there, and it can’t all be on boats. The airplane industry, as a result, is highly protected. But there’s a fair amount of money to be made by undercutting on margin especially via innovation, and high barriers can stop that only for so long. The classic end run happened in my childhood / teenage years with cars: stop imports with tariffs? Fine, we’ll just make them in country instead. And, generally speaking, in the South, where the unions aren’t strong. As in, they don't actually exist.
But that isn’t even the kind of manufacturing I had in mind. It’s an important and interesting development, but while I may be from Seattle, I feel approximately the same amount of loyalty to Boeing as Boeing felt to Seattle (which is to say, not very much).
The kind of manufacturing I have in mind is moving to the US from Elsewhere (mostly China) for two reasons.
(1) As the relative value of US and Chinese currencies adjusts to reflect massive changes in the Chinese economy (it’s a slow process, but it is happening), the benefit of moving manufacturing from the US to China has reversed. Basically, the China wage isn’t what it once was. And automation these days is amazeballs.
(2) If you can automate enough of a manufacturing process to reduce the cost of labor required to a tiny fraction of the value of the end product, you don’t give a fuck _where_ you make it, at least not in wage terms. It turns out, you can get the labor cost so low, that you care _more_ about shipping costs than labor costs. At that point, it makes a lot of sense to move closer to where you are going to sell the final product.
Finally, states, local governments, the national government and other entities often create enticing packages of tax incentives and other benefits to move a manufacturer to a given location, in hopes of getting a bunch of sweet, sweet jobs along with it. Generally speaking, corporations seem to be better at hiring people to assess these deals than the politicians who create them (or maybe they just care about the bottom line in terms of dollars more, while the politicians care more about the votes, and it is really us voters who need to Step Up Our Game). That’s a powerful incentive to move manufacturing back to the United States.
Why not move to some other place in the world, cheaper than China? Well, China is already locking down a chunk of the African continent, in terms of manufacturing capacity. Governance issues can’t be entirely ignored, either, because governance tends to determine quality of labor force and infrastructure, which US businesses tend to expect more out of than Chinese businesses.
So, yep, manufacturing is coming back to the United States. But don’t be thinking that’s going to involve a lot of jobs. Because it probably won’t.
Re: literal minded . . .
People _still_ cook for their family on open fires in their only living space right here on Earth. It is a problem that needs to be addressed further.
I am reasonably certain that retrieving things that have been dropped onto Earth has some sort of cost associated with it. Which would seem to be the most relevant part in terms of my original post. (And that's ignoring packaging things to survive the drop.)
Re: literal minded . . .
Check, check and check.
- And thank you. I'm a LiveJournal refugee, and I MISS being able to discuss things like this!
Re: literal minded . . .
Re: literal minded . . .
> retrieving things that have been dropped onto Earth
> has some sort of cost associated with it
Well, here - let's try THIS
https://c1.staticflickr.com/5/4468/37697974641_f42abf100f_h.jpg
… it ought to work!
*grin*