Re: interesting chart
Dex
9/13/2011 10:17:17 AM
Well, it is from the federal government, And you know we can trust the feds.
Here's the pie chart Sherri refers to.
Somehow, it doesn't feel right - imports only account for 14%? Really?
I seriously doubt Mr. Immelt' capability as GE leader when he broke GE's long history of increasing dividend payout. In early 2009, first he promised investors that GE has no liquid issue and dividend payout will not be changed, then a week later he slashed the dividend more than 60 percent. Either he was ignorant or a pure liar.
reshoring
AskAsa
9/10/2011 4:05:34 PM
From the article:
(Of course, GE also announced this summer that it's moving its global X-ray headquarters from Waukesha, Wis., to Beijing, thereby taking about 125 jobs out of the US. But let's stay focused.)
We should stay focused on the fact that White House sychophant Jeff Immelt often speaks with forked tongue. Compare his time at the GE Helm to Jack Welch who knew how to run a company.
Immelt and his little TV buddy Jeff Zucker are the Fat Man and Little Boy of modern corporate culture. Both managed to destroy everything they touched.
I'll believe those 500 new jobs when I see them.
Re: interesting chart
yalanand
9/10/2011 4:12:13 AM
@Sherri is this trend just limited to manufacturing? What about IT outsourcing ? Do we see reshoring trending in Information Technology as well ?
Re : Manufacturers Find There's No Place Like Home
yalanand
9/10/2011 4:10:23 AM
"China's overwhelming manufacturing cost advantage over the US" is evaporating.
@Sherri, just wondering if this is the end of emerging market boom. Reshoring will definitely impact the growth of China which is considered as the manufacturing hub.
RE: "US manufacturers already make about 75% of the products Americans consume." This pie chart (at the bottom of the page) shows an even higher percent, 81.9%, while China accounts for 2.7% and other countries, 6.1%.
@mInvestor -
1. In the example, productivity is measured as a fraction of US productivity. This is just how it's defined for comparison.
2. Labor is only one component of the cost of the product, so any change on labor cost will have a smaller % change on the overall product.
3. Same as 2. Since labor is 1/4 of the cost of the product, a 25% increase in labor causes a 6% increase in the product price.
There is another big trend few investors notices: The working age population of China will reach its peak next year. China will see the shrinkage of worker supply. The higher wage is just the start of the trend. Shrinkage in worker supply can also mean the burst of real estate bubble, domestic consumer spending crash, etc.
The Chinese government does have huge hoard of cash reserve to handle these crisises. But it can be a repetition of what happened to Japan in late 80s.
You can get more detail about the chart in the Boston Consulting Group report: http://www.bcg.com/documents/file84471.pdf
Lots of details.
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