General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsUS Factory Boom Heats Up as CEOs Yank Production Out of China
https://www.bloomberg.com/news/articles/2022-07-05/us-factory-boom-heats-up-as-ceos-yank-production-out-of-china?leadSource=uverify%20wallScores of smaller companies are making similar moves, according to Richard Branch, the chief economist at Dodge. Not all are examples of reshoring. Some are designed to expand capacity. But they all point to the same thing -- a major re-assessment of supply chains in the wake of port bottlenecks, parts shortages and skyrocketing shipping costs that have wreaked havoc on corporate budgets in the US and across the globe.
In the past, says Chris Snyder, an industrials analyst at UBS, it was as simple as if we need a new facility, its going in China. Now, he says, this is being thought through in a way that has never been done before.
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To Kevin Nolan, the CEO at GE Appliances, all this fretting about high costs in the US is overdone. It has been for years, he says. Around 2008, he came to realize that on large items -- like, say, dishwasher size and up -- the savings earned by eliminating overseas shipping could outweigh the extra money spent on labor here. The key, he determined, was to wring maximum efficiency out of the factory floor to keep those labor costs down. A year later, he decided to test the thesis out and moved some of GEs water-heater production to Louisville. Other product lines followed.
BootinUp
(47,141 posts)I think its great.
Demsrule86
(68,552 posts)czarjak
(11,266 posts)Paul Ryan said it was "a good thing" that Mittster made 200 million dollars sending American jobs overseas.
purr-rat beauty
(543 posts)the U.S. is ripe for the picking, these companies swear no allegiance to any country.....they go where they can consume
our country is fucked, this world is fucked.
former9thward
(31,981 posts)The manufacturing that is coming back is very automated.
"The key, he determined, was to wring maximum efficiency out of the factory floor to keep those labor costs down"
Very low number of jobs.
Hermit-The-Prog
(33,328 posts)Demsrule86
(68,552 posts)Biden was there yesterday. There is also, investment in Detroit and other rust belt areas.
former9thward
(31,981 posts)As I said. So what I said is true. And chip factories have very few jobs. They are highly automated.
NBachers
(17,105 posts)LittleGirl
(8,282 posts)I don't know what they are thinking doing that.
Demsrule86
(68,552 posts)Fiendish Thingy
(15,585 posts)Thats a pity.
Nevertheless, Biden/Harris should visit each site this fall to raise awareness about the return of manufacturing jobs to the US.
This was the first Id heard about specific factories in specific locations; all previous reports Id heard were very vague and general (but then, I dont live in any of the areas where factories are being built)
Metaphorical
(1,602 posts)These jobs require advanced skills, which usually translate into more liberal mindsets. Huntsville, AL, for instance, is.a growing blue enclave in the otherwise very red state.
SunSeeker
(51,550 posts)Chainfire
(17,530 posts)usonian
(9,776 posts)Better in both regards.
Capitalists gonna do what suits them, but walls are a (brutal) political choice. I only wish they could be sold for scrap.
Qutzupalotl
(14,302 posts)fightforfreedom
(4,913 posts)Making everything overseas might one day be a problem. DUH! As a teenager in 1970's I recognized the problem with moving our factories overseas. It only took a major pandemic to wake us up, over 40 years later.