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MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

makerbot.com

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Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#71
post #33

Earlier quoted context omitted.

Makerbot Studio is in Industry City, where rent isn't exactly "expensive".[0] Rent (for employees) is also very accessible in the nearby area, nothing close to Manhattan or some swanky neighborhood in BK. (I live nearby) In my opinion, especially in technology, its just hard to operate at scale and not produce products in China. Not only is their labor force less expensive but the parts that you require are manufactu…

I was about to post this but you beat me to it, for context when people picture "brooklyn rent" they think williamsburg which according to trulia has a $3525 avg rent ( http://www.trulia.com/real_estate/Williamsburg-Brooklyn/5274... ) as opposed to sunset park (the neighborhood which industry city lies) which it has at $1700, less than half. ( http://www.trulia.com/real_estate/Sunset_Park-Brooklyn/5246/ )

Average rental price of $1700 is still pretty high compared to most of the US.

Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#72
post #70
post #17

Earlier quoted context omitted.

I often wonder if costs could be lowered for many of these companies if they would stop locating in some of the country's most expensive places to operate and for their employees to live. I know the arguments about workforce availability and all that, but I've never seen a proper look into it.

Probably. But then there is shipping. If I may stray a bit. The price to ship a small package from Adafruit to a place less than 10 miles cost me around $10.00 - 4 days tops. I can make a similar purchase for a Chinese spoofed version and have it in 7 days, free shipping. I don't know how the heck the shipping from China is so cheap. While to ship anything inside the us is frigging expensive...to ship outside the us…

Locate somewhere near the population centroid, like, say, Oklahoma City and your avg shipping costs probably go down.

Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#73

If Middle America wants those jobs, Middle Americans are welcome to start a fashion label of their own. But since they seem to thrive on blandness in the Midwest I doubt that's going to happen.

Yeah, I guess Abercrombie, Victoria Secret, Express, The Limited, Pink, Hollister, Justice are all pretty bland...

Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#75
post #33

Earlier quoted context omitted.

Makerbot Studio is in Industry City, where rent isn't exactly "expensive".[0] Rent (for employees) is also very accessible in the nearby area, nothing close to Manhattan or some swanky neighborhood in BK. (I live nearby) In my opinion, especially in technology, its just hard to operate at scale and not produce products in China. Not only is their labor force less expensive but the parts that you require are manufactu…

I was about to post this but you beat me to it, for context when people picture "brooklyn rent" they think williamsburg which according to trulia has a $3525 avg rent ( http://www.trulia.com/real_estate/Williamsburg-Brooklyn/5274... ) as opposed to sunset park (the neighborhood which industry city lies) which it has at $1700, less than half. ( http://www.trulia.com/real_estate/Sunset_Park-Brooklyn/5246/ )

I saw a posh house in Florida a few months ago for $700 a month. The whole house and yard space. 20 minutes from Miami. Weeks later I saw a one for $550 in North Carolina.

Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#76

Earlier quoted context omitted.

There's a great amount of manufacturing in the US. In fact, the US is the world's second largest manfacturer. The reality is you can't open a manufacturing shop in a hip and gentrified urban neighborhood for "cool points" and expect to keep costs down. You want factories in poorer rural areas, not a place where the media home sale price is close to $700,000. The China or bust mentality serves big business, but the re…

Houston seems to be one place its pretty easy to get setup in.

Houston's not as cheap as it used to be. Right now if you want to get parts made it's totally doable. But two years ago when oil was at $100/bbl? I couldn't get anyone to return a call, ever! The company I worked for had to start its own machine shop to get anything done.

Housing was cheap in '09 but the average apartment rent was $1700 in November '15. That's over a year since the oil price crashed.

If oil prices continue to stay low for another year or two Houston might get more affordable as people leave looking for work elsewhere. But that's a big "if" and it's barely started.

Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#77

If Middle America wants those jobs, Middle Americans are welcome to start a fashion label of their own. But since they seem to thrive on blandness in the Midwest I doubt that's going to happen.

Yeah, I guess Abercrombie, Victoria Secret, Express, The Limited, Pink, Hollister, Justice are all pretty bland...

They are.

Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#78
post #70
post #17

Earlier quoted context omitted.

I often wonder if costs could be lowered for many of these companies if they would stop locating in some of the country's most expensive places to operate and for their employees to live. I know the arguments about workforce availability and all that, but I've never seen a proper look into it.

Probably. But then there is shipping. If I may stray a bit. The price to ship a small package from Adafruit to a place less than 10 miles cost me around $10.00 - 4 days tops. I can make a similar purchase for a Chinese spoofed version and have it in 7 days, free shipping. I don't know how the heck the shipping from China is so cheap. While to ship anything inside the us is frigging expensive...to ship outside the us…

It's because the USPS is subsidizing the cost of that shipment.

"The Postal Service is losing millions a year to help you buy cheap stuff from China" https://www.washingtonpost.com/news/storyline/wp/2014/09/12/...

Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#79
post #17

Earlier quoted context omitted.

I often wonder if costs could be lowered for many of these companies if they would stop locating in some of the country's most expensive places to operate and for their employees to live. I know the arguments about workforce availability and all that, but I've never seen a proper look into it.

I've always been off-put by American Apparel's "Made in Downtown Los Angeles". Like I'm supposed to be impressed by it. For Middle America, it might as well say "Made in Downtown Dubai".

I'm reminded of the old Pace Picante Sauce ads, in which the crowd of homespun rustics would all cry out at once, "New York CITy?!?!"

Coastals might feign confusion, but that spoke to lots of folks.

Re: MakerBot Is Outsourcing Its Brooklyn Manufacturing Jobs to China

#80

Makerbot is in a tough spot. They lost points with people when they announced closing off of some of their work vs remaining open source. And so customers thought they might (if they are paying premium for consumer level printing anyway) to go with Ultimaker which retained premium build quality and remained open. And month after month, other companies keep bringing printers out to compete. Microcenter is carrying Mak…

> But if you straighten out trade balance and currency manipulation Chinese products become more expensive as they naturally should be

Can you explain China's currency manipulation? I don't get how this is different from the Fed printing money. Every country does it to an extent.

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