China Losing Manufacturing to the US?

Even 20 years ago people were discussing the fact that more and more manufacturing jobs were going overseas. China was frequently brought up in these conversations. The general belief that I was exposed to was that allowing our manufacturing work to move to China would ultimately be a bad move for the United States. The second argument was the fact that Chinese goods seemed to be of a lesser quality than goods made in the US.

It seems like this trend may be reversing.

Scott is a design engineer. He started going to China in the mid-1990s to do work for clients. Huff was living in Chicago at the time. Every year, the travel got heavier as more and more clients manufactured in China.

Eventually, in 2004, this guy actually moved to China, where he now lives and works, dealing with manufacturers.
Now he says:

“Things are getting expensive in China, pure and simple,”

Of the last four out of five jobs I quoted for injection molding in the U.S. versus molding in China, the U.S. won. Most people don’t believe me when I tell them I’m getting better prices in the U.S.

“Labor costs have gone up substantially in China. That’s not a mystery to anybody. The amount of labor available at any price for some jobs is just not there. If you want to polish a piece of stainless steel for the kitchen industry or tie rawhide pet treats, you’re going to have a tough time finding people. People have options. They’d rather put together an iPad now.”

The Daily Reckoning

Now there are two things this makes me think about.

The first one is: Manufacturing coming back to the US would do two things. It would help our economy, which is and has been in the toilet, and people would be have access to higher quality goods. In my experience, much of the stuff made in China is crap. Not all of it, but a lot.

The second thing is: Kiddos out there! Pay attention to this trend. You know what the US lacks right now? The type of skilled laborers needed to do this type of work.

The U.S. lost an entire generation of toolmakers. They’re just not there. The old Polish toolmakers I used to work with in Chicago have all retired, or if not, they are more gray-headed than I am. And there aren’t the apprentices ready to step in. You can’t find a good toolmaker in Chicago right now. It’s hard to come up with. And the skill set — you can’t just turn it on and off like a faucet.”

All of you people out there trying to decide what to do with your life, what type of education can you get that will help you get and keep a good job: this could be your answer. It's at least something to pay attention to.

It would be worth your time to take a minute and read the full article. There is good information in there and I think it will be interesting to see how this develops.

With all the the money printing and devaluing of currency in the west, and the higher fuel costs for transport, together with rising pay in China, eventually it will make more sense to manufacture closer to home.China will want to move into high end high value manufacturing,labour intensive low value production will find some other low wage mecca probably some back to the west.

I predicted this years ago when China was starting to boom as a manufacturer.

Its all about profit. Americans would never have worked for cheap labor back then. Starve the peasants for a couple of months and watch them beg for minimum paid jobs.

Only those with a lack of vision are the ones blind to the future.

Money is like water it flows to the lowest point. Right now its Greece America and a few other Eurozones.

They have the infrastructure and the desperate jobless. Basic economics.

Originally posted by TiM3LoRd
I predicted this years ago when China was starting to boom as a manufacturer.

Its all about profit. Americans would never have worked for cheap labor back then. Starve the peasants for a couple of months and watch them beg for minimum paid jobs.

Only those with a lack of vision are the ones blind to the future.

Money is like water it flows to the lowest point. Right now its Greece America and a few other Eurozones.

They have the infrastructure and the desperate jobless. Basic economics.

edit on 1-5-2012 by TiM3LoRd because: (no reason given)

The same goes for many Australians, regardless of the manipulated unemployment figures, we are not far off from working for a bowl of rice these days. Especially after one pays rent, a mortage, insurances and all the other forced expenses we have to carry. Along with little real employment and high immigration.

Originally posted by TiM3LoRd
I predicted this years ago when China was starting to boom as a manufacturer.

Its all about profit. Americans would never have worked for cheap labor back then. Starve the peasants for a couple of months and watch them beg for minimum paid jobs.

Only those with a lack of vision are the ones blind to the future.

Money is like water it flows to the lowest point. Right now its Greece America and a few other Eurozones.

They have the infrastructure and the desperate jobless. Basic economics.

edit on 1-5-2012 by TiM3LoRd because: (no reason given)

The same goes for many Australians, regardless of the manipulated unemployment figures, we are not far off from working for a bowl of rice these days. Especially after one pays rent, a mortgage, insurances and all the other forced expenses we have to carry. Along with little real employment and high immigration.

Originally posted by marsend

Originally posted by TiM3LoRd
I predicted this years ago when China was starting to boom as a manufacturer.

Its all about profit. Americans would never have worked for cheap labor back then. Starve the peasants for a couple of months and watch them beg for minimum paid jobs.

Only those with a lack of vision are the ones blind to the future.

Money is like water it flows to the lowest point. Right now its Greece America and a few other Eurozones.

They have the infrastructure and the desperate jobless. Basic economics.

edit on 1-5-2012 by TiM3LoRd because: (no reason given)

The same goes for many Australians, regardless of the manipulated unemployment figures, we are not far off from working for a bowl of rice these days. Especially after one pays rent, a mortgage, insurances and all the other forced expenses we have to carry. Along with little real employment and high immigration.

edit on 1-5-2012 by marsend because: typo

I agree..Twice

America has always had the edge in quality manufacturing. We just couldn't compete with 22 cents an hour pay rate. Now that China is growing and her people are getting a taste of the material life, the demand for decent pay has risen and the pay gap is closing fast. Unless China can steal more of our talent to show them how to manufacture goods, there days as manufacturing king are numbered.

The thing that I find most gutting, is not only does my country now have little future and is being run by slimy amoeba types more interested in personal profit and ego. Is that we do not make a lot here these days, and nearly everything you buy is poor quality Chinese s h i t, I do not see anything environmentally friendly about this, its all about consumerism, so middle men make profits and the slimes in government make money, while the public become the pheasants. I like China, but hate drills that bend but do not break, shoes that last 2 months and contaminated food. Bring back English shoes, German Drills and Australian and American quality any day

You could start the story, a long time ago, when s h i t was real, and tools out lasted men, when things mattered and kids could spell. But we all know that was a long long time ago.

For one I am sick of Chinese rubbish.!

reply to post by Ameilia


I found another bit of news that pertains to the theory in the original post:

Rumor: New Microsoft Xbox Console Being Manufactured in Texas

Now, it's not like I've spent the past 30 years paying attention to exactly where console games were manufactured, but, my educated guess tells me that aren't normally, or have never been, manufactured in the United States previously. I'm thinking original Nintendo from the 80's and onwards.

General Electric's Appliance Park where I work as maintenance technician is bringing jobs back from China and Mexico by moving product lines to Louisville, KY. The GeoSpring Hybrid Water Heater and washer/dryer pedestals from China and a French door refrigerator from Mexico, hiring thousands for new lines and investing billions ...