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Businesses United States

Dramatic Shifts In Manufacturing Costs Are Driving Companies To US, Mexico 233

Posted by Soulskill
from the let's-debate-onshoring dept.
hackingbear writes: According to a new Cost-Competitiveness Index, the nations often perceived as having low manufacturing costs — such as China, Brazil, Russia, and the Czech Republic — are no longer much cheaper than the U.S. In some cases, they are estimated to be even more expensive. Chinese manufacturing wages have nearly quintupled since 2004, while Mexican wages have risen by less than 50 percent in U.S. dollar terms, contrary to our long-standing misconception that their labors were being slaved. In the same period, the U.S. wage is essentially flat, whereas Mexican wages have risen only 67%. Not all countries are taking full advantage of their low-cost advantages, however. The report found that global competiveness in manufacturing is undermined in nations such as India and Indonesia by several factors, including logistics, the overall ease of doing business, and inflexible labor markets.
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Dramatic Shifts In Manufacturing Costs Are Driving Companies To US, Mexico

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  • Re:Growing pains. (Score:3, Informative)

    by Reason58 (775044) on Thursday August 21, 2014 @11:33AM (#47721493)

    China's water and air conditions are miserable ... a condition that is reminiscent of the 1900s in the US.

    ...and they have almost 18 times the population of 1900 America.

  • Not flat. (Score:5, Informative)

    by Anonymous Coward on Thursday August 21, 2014 @11:36AM (#47721513)

    US wages are not flat. They're declining. Adjusted for inflation and the cost of living increases, your effective purchasing power is 1/3rd of that of your grandparents.

    Your parents and grandparents were able to buy a house, two cards, and send 2 children to college on a single income. You can't. You can't even with you and your spouse working full time with decent jobs. Your children will need loans to go to college and you will need to fork out a lot of money for childcare while you both work. You should probably pay for private tutoring too, to make up for your lack of time with your children you spend working. (Parental involvement in education is key to educational success. THE number one factor. It's why lower income people stuck working 60+ hours a week with 3-5 part time jobs have children with bad educational outlooks)

    Point is, you're getting screwed. The income gap between the wealthy and poor has increased exponentially in the last 30 years. And it's no accident. There are people working hard to make sure you and your children grow up stupid, in to a life of perpetual debt and poverty.

  • by HeckRuler (1369601) on Thursday August 21, 2014 @11:45AM (#47721585)

    Have you ever been to a third-world country?
    Have you lived there?
    Because I think it's quite apparent that you don't have a clue what you're talking about. But here's a quick'n'easy test: Our poor are fat. Their poor are skinny.

  • Re:Zooooom! (Score:2, Informative)

    by bobbied (2522392) on Thursday August 21, 2014 @11:53AM (#47721667)

    Watch Republicans campaign again to get rid of the minimum wage.

    Exaggerate much? Republicans don't wan to get rid of the minimum wage. Why would anybody campaign to get rid of the minimum wage? It would be stupid to just out and hand the democrats a loaded guy and say "Shoot me in the face!" trying to get rid of the minimum wage.

    This republican knows of nobody trying to get rid of the minimum wage and I dare say you don't either.

    BUT, that's not to say the democrats are not manufacturing such outrageous claims about republicans (i.e. lying about republicans intent) and turn the opposition of RAISING the minimum wage into something it's not.

  • Re:Zooooom! (Score:5, Informative)

    by Ralph Wiggam (22354) on Thursday August 21, 2014 @12:03PM (#47721771) Homepage

    Exaggerate much? Republicans don't want to get rid of the minimum wage.

    You should try paying attention.

    "I think it's outlived its usefulness," said Rep. Joe Barton of Texas. "It may have been of some value back in the Great Depression. I would vote to repeal the minimum wage."

    http://www.nationaljournal.com/white-house/can-obama-unilaterally-raise-the-minimum-wage-20131205

  • Total BS (Score:4, Informative)

    by Charliemopps (1157495) on Thursday August 21, 2014 @12:05PM (#47721787)

    This is complete BS, they come out with nonsense studies like this all the time.
    My father works in manufacturing, they don't like going over seas, you have a hard time controlling quality, ensuring design specs, etc...
    But there is no way they can stay in business without it.
    According to my father, when doing analysis of where to send work The total cost of labor (including benefits an such) are roughly as follows:
    US: $15/hr
    Mexico: $1/hr
    China: 10cents/hr
    The minimum wage is mexico is $5/day, so yea...
    China has the benefit of the manufacturer paying no benefits at all and the government keeping the employees healthy.
    There are added costs like shipping, bribing government officals etc...
    But the costs would have to be huge to make up the difference between $15/hr and 10 cents per hour.
    Where US workers come into the picture is to save money on shipping. If you can send the product over in pieces, save a ton on shipping and then have the final product assembled here, you can get the best of both worlds.

  • Re:Zooooom! (Score:5, Informative)

    by Ralph Wiggam (22354) on Thursday August 21, 2014 @12:06PM (#47721799) Homepage

    I submitted my previous post to soon. You could dismiss one Congressman as not representative of the party.

    So here is the official 2014 platform of the Republican Party of Texas.

    Minimum Wage Repeal- We believe the Minimum Wage Law should be repealed.

    Prevailing Wage Law- We urge Congress to repeal the Prevailing Wage Law and the Davis
    Bacon Act.

    Workers Compensation- We urge the Legislature to resist making workers’ compensation
    mandatory for all Texas employers

    http://www.texasgop.org/wp-content/uploads/2014/06/2014-Platform-Final.pdf

  • Re:Zooooom! (Score:2, Informative)

    by bobbied (2522392) on Thursday August 21, 2014 @12:13PM (#47721845)

    Exaggerate much? Republicans don't want to get rid of the minimum wage.

    You should try paying attention.

    "I think it's outlived its usefulness," said Rep. Joe Barton of Texas. "It may have been of some value back in the Great Depression. I would vote to repeal the minimum wage."

    http://www.nationaljournal.com/white-house/can-obama-unilaterally-raise-the-minimum-wage-20131205

    You should use the whole quote too:

    It's particularly unpalatable for Republicans, as the majority of them oppose to raising the minimum wage at all. "I think it's outlived its usefulness," said Rep. Joe Barton of Texas. "It may have been of some value back in the Great Depression. I would vote to repeal the minimum wage."

    I'd vote to get rid of it it too, but I'm not running a campaign to repeal it. Joe Barton isn't campaigning to repeal it either. You are claiming republicans campaign to get rid of it. Big difference. There is no campaign by republicans to get rid of it.

  • Re:Growing pains. (Score:5, Informative)

    by blue9steel (2758287) on Thursday August 21, 2014 @12:38PM (#47722063)

    We had our own struggles during the era of the robber-barons.

    Umm, wrong transition period, that was the Agricultural to Industrial changeover not the Industrial to Service one.

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