Re: Made in the USA
Dex
9/6/2011 7:33:48 AM
My favorite quote from the Andy Groves piece:
"I think the biggest enemy of manufacturing in the U.S. is the pseudo-knowledge that America is a bad place for manufacturing. This perception will keep manufacturing from happening and thereby ensure that the reality will fulfill the prophecy."
I think there is a place in America even now for a strong manufacturing sector. Realistically, the cost differential may not be as great as we perceive. (Apparently GE doesn't know that @Marvin)
Re: Reshoring
Jacob
9/5/2011 3:43:38 AM
Sherri, good analysis. If demand is there surly the sector may come up irrespective of any economic slowdown. If we are looking across industry and sector, the same strategy is reflected across the globe.
I would love to see more reshoring, but most of the tech leaders I speak with are concerned about repatriation taxation. They view tax liability on funds they bring home from overseas as a major barrier to bringing jobs back.They also worry that the lower cost in the US will disappear when the economy starts to really recover. Plans to move manufacturing are based on long term forecasts and not the cost today. Maybe we will get some sensible policies to make this more of a reality.
Re: Made in the USA
mInvestor
9/3/2011 6:02:53 PM
PredicatableChaos,
By reading the link you provided, I was actaully shocked. Andy Grove thinks "Made Overseas is cheaper" is just a prophecy, not a reality. Andy Grove, a great retired Intel CEO, he thinks like that? I am wondering where has he been in the past 30 years.
And what did he suggest to bring manufacturing back to US? Protectionism. The consquences are poor average americans pay more for daily life, and the governments have high debt.
Bringing manufactruing back here is important, but need more innovative ideas. We need find ways to make "manufactured in US" becomes cheaper, more compttitive. Give consumers more benifits.
Maybe this is not Andy Grove's idea, it's just a spam created from this web link?
Hopefully, our leaders won't think or behave like that.
Sherri--
I, too, am really excited about the re-shoring trend. I would say, "What's not to like?" except that I guess the obvious answer is that the likely geographic candidates for re-shoring will be the right to work states and that means union busting and the loss of a hundred years worth of advances in hard-won worker safety protections, collective bargaining, etc. We don't need to institutionalize more inequality into our system.
However, with 9.1 unemployment all but etched in stone, I'm certainly willing to keep an open mind, and I certainly don't want the government stepping in and making things difficult for companies such as Boeing that are trying to re-shore.
Very complex set of issues...
Andy Grove, former chairman of Intel, knows about innovation and creating jobs. He believes we need to work aggressively to bring manufacturing jobs back to the US and we won't solve our unemployment problems any other way.
He differs with those who argue that we should let manufacturing go wherever it will and our economy will be built on innovation in other areas. He cites the Photovoltaic industry as an example where the initial ideas were in the US, but the major gains in employment are all in Asia. As a consequnce, most of the innovation has now moved there as well since scaling production is such an important part of any new technology.
Here's an interview Grove did on the topic for Technology Review recently.
Sherri
Look forward to your next article. I also noticed "Made in US" trend. But just haven't decipher the inside motivation from this trend.
Let's hope we don't jus lower our wage to compete with overseas to gain manufacturing back. Rahter I'd bet on innovation, entrepreneurial spirit, and great leadeship.
There's also an interesting trend I hope to write about and that is a renewed interest in "Made in the USA" products. Perhaps more companies would use that as a selling point. Of course, we wouldn't want everything to be made in the U.S., but a healthy balance would be nice.
Let's hope U.S. wages don't reach the point where they're low enough to beat the overseas competition. I think the hope is that other cost savings will offset higher U.S. wages and that overall costs to produce in the U.S. will someday be in line with (or close to) the cost to produce goods overseas.
Sherri,
Thank you for this article. And you are right, by "just boosting local economy" won't bring manufactruing back to US. Even the rising wage in China probably won't help too mcuh. The wage in China is rising, but there are many other countries have even lower average wage, like Vietnam, Malasia. To bring manufacturing back in US might need more creative thinkings.
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