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  #1 (permalink)  
Old 12-24-2012, 08:42 AM
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See? I told you it was sensitive. Look, I don't want to seem unfeeling, but the fiscal realities are that American labor must be prepared to compete globally if it expects to keep jobs. If domestic labor costs exceed foreign labor costs by more than a "token amount," management will move the production overseas -- I'm just telling you like it is. You know, a lot of us on this board had parents that were raised during the Depression, and we, ourselves, grew up in the shadow of our parents' life experiences. I believe they would tell American labor that if the jobs no longer can support your desired standard of living, and you want to keep those jobs, then you must be prepared to lower your standard of living. Like I said, it's a very sensitive subject....
Just so you are aware..it is generally NOT the labor cost that is the deciding factor on where to produce the items. Since the value of the dollar has dropped and the Chinese are demanding higher pay, that is becoming much smaller of an issue. The big difference is in material costs. The Chinese government holds the costs of the material artificially low via government subsidies. For example, a few years ago, you could buy a complete mold roughly 6'x3'x12" in dimensions from China for about $1000. The material alone in the USA was more than that. It was cheaper to buy the screwed up mold from China, ship it here, and have it repaired than to buy material here.

Extensive use of automation and sophisticated CNC machines has made any difference in labor negligible. We are now competing with shipping costs, material costs, and delivery times. We can beat all of those in the USA except your most basic of items...like hand tools.
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Old 12-24-2012, 08:51 AM
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The point is, the American worker must be prepared to say "I will work for less, and lower my standard of living in order to do so, to keep my job in this country." Do you disagree?
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Old 12-25-2012, 10:32 AM
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The point is, the American worker must be prepared to say "I will work for less, and lower my standard of living in order to do so, to keep my job in this country." Do you disagree?
Depends on the job. If you want to flip burgers, that is an accurate statement. We are talking about, machining and other manufacturing jobs, you do not have to say this at all. What you need to do is keep up with the times, keep educating yourself, and invest in newer equipment and tooling. If you fail to do this, then you are no better than the Chinese worker and they WILL beat you every time on other costs.
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