U.S. Manufacturing costs are almost as low as China’s
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Re: U.S. Manufacturing costs are almost as low as China’s
#2I think at this point US simply has no specialized factories to manufacture things.
Re: U.S. Manufacturing costs are almost as low as China’s
#3At what scale? I pay roughly $3/hr for welding in china.
Re: U.S. Manufacturing costs are almost as low as China’s
#4- because fracking is bringing cheaper oil and gas, for lower energy costs.
Re: U.S. Manufacturing costs are almost as low as China’s
#5I think at this point US simply has no specialized factories to manufacture things.
It's actually the opposite: We're great at speciality, high-tech stuff, but we don't do commodity contract manufacturing as well as China. The good part of this is that the former has far better margins than the latter.
Re: U.S. Manufacturing costs are almost as low as China’s
#6At what scale? I pay roughly $3/hr for welding in china.
And you feel pride? Seriously, 3$/h? Assumming that a large junk goes to the shop owner, that's not a lot to make each month.
Re: U.S. Manufacturing costs are almost as low as China’s
#7Re: U.S. Manufacturing costs are almost as low as China’s
#8I think at this point US simply has no specialized factories to manufacture things.
It's actually the opposite: We're great at speciality, high-tech stuff, but we don't do commodity contract manufacturing as well as China. The good part of this is that the former has far better margins than the latter.
So you are only cheaper on expensive stuff.
Re: U.S. Manufacturing costs are almost as low as China’s
#9Earlier quoted context omitted.
And you feel pride? Seriously, 3$/h? Assumming that a large junk goes to the shop owner, that's not a lot to make each month.
You are assuming cost of living is the same in both places, which it isn't.
I am not assuming that no.
But I could assume that the welding is done in Shenzhen (maybe GP chips in where he sources welding at 3$/h?).
http://www.numbeo.com/cost-of-living/city_result.jsp?country...
That hourly rate wouldn't even covering rent of an 1-bedroom apt outside of centre.
Re: U.S. Manufacturing costs are almost as low as China’s
#10Earlier quoted context omitted.
It's actually the opposite: We're great at speciality, high-tech stuff, but we don't do commodity contract manufacturing as well as China. The good part of this is that the former has far better margins than the latter.
So you are only cheaper on expensive stuff.
For now, but the trend in the article is related to mass manufacturing. Fracking (lower electricity prices, cheaper oil) helps large steel and aluminum manufacturers. Cheaper raw materials leads to cheaper widgets.