Off course buy USA doesnt apply to me as a European, but its the truth. Not just governmental regulations and taxes make conditions for business, consumers too: Jobs went to china because we wanted the cheapest price for what we buy, and sell our own labour for the highest wages... Free markets will wander towards the cheapest producers unless import regulations are applied. The free market system that once made America a superpower within 100 years of its existence (a world history record !) is now working against them.
Off course buy USA doesnt apply to me as a European, but its the truth. Not just governmental regulations and taxes make conditions for business, consumers too: Jobs went to china because we wanted the cheapest price for what we buy, and sell our own labour for the highest wages... Free markets will wander towards the cheapest producers unless import regulations are applied. The free market system that once made America a superpower within 100 years of its existence (a world history record !) is now working against them.
Where i work, most of the spring rolling and pressing is automated to reduce labour, and simple pressings and castings are outsourced because foundries need HUGE amounts of energy to heat the material, and energy isnt taxed in China, they just pollute as they wish... Our Western world life standard, worker safety and environmental protection standards are working against us, as the Chinese are willing to lowball because they accept a lower wage, life standard, worker safety and environmental protection. And yes, chinese workers dont have anything to choose, as they live like cattle and spend their spare time in factory owned housing, with little privacy and all such things that make Western life good... I dont envy them.
Techtronic Industries - Wikipedia, the free encyclopedia
Techtronic Industries Company Limited (SEHK: 669, OTC Pink: TTNDY), Techtronic or TTI, is one of the world's leading manufacturing and trading companies in electrical and electronic products. Its products include Milwaukee, AEG power tools, and Ryobi power tools and accessories, Ryobi and Homelite outdoor products, and Hoover, Dirt Devil, and Vax floor care appliances. [1] It was established in 1985 as the original equipment manufacturer (OEM) behind such brands as Craftsman, RIDGID (for Home Depot), Bissell, Dirt Devil, Hart tools and stiletto tools.[2] It is headquartered in Hong Kong.[
DeWalt Brings Some Power Tool Production Back to the U.S - Tools of the Trade
Tool companies that sell in the U.S. typically avoid mentioning overseas production, but in a surprising burst of candor, the FAQ on the DeWalt Tools of the Brave website states where some imported components are from. According to the FAQ, batteries for the cordless tools assembled in Charlotte will come from China, Mexico, Japan and Korea, and the chargers will come from Thailand, China, and Taiwan. It goes on to say that the company currently manufactures tools “in the U.S., Mexico, Brazil, China, Italy, the U.K., Czech Republic, and other locations”. That tools and components come from so many different countries is typical of the way large multinational tool companies operate
I don't think we "shipped the jobs" overseas as much as the world of manufacturing has evolved around us. We still tend to think assembly line work are "high paying jobs" when engineers have engineered all the skill out of it. Assembly line factory jobs are not the high paying lifetime careers they used to be, and shouldn't be. McDonalds is an assembly line (and even they pay too much). Chimps can be trained that the square peg does not fit in the round hole and part A and part B go together...
Engineering, technology, the things that make manufacturing possible, those are the high paying skilled trades we need more workers to fulfill. Who cares if China is assembling all the things we design and have built as long as we are the designers and ones having it built. If we design things and have them built to our standards where the labor is cheapest, that means more profit is able to come home to us. If untrained assembly line workers here wish to compete for those minimal skill jobs, more power to them. If we can get things built here for the same or similar cost, we save in shipping the stuff from there to here.
The American worker needs to change their goals, or if nothing else their expectations. We can't pay McDonald's workers $8 an hour, it will be the death of the dollar menu... McDonalds isn't a career, it is something for a high-school kid to have some spending money or save up for a car to have to drive while in college or to pay for the gas and whatnot while in college. There is a difference between collecting a wage and earning a living, sadly most folk can't see a difference and expect parity... end rant...
Engineering, technology, the things that make manufacturing possible, those are the high paying skilled trades we need more workers to fulfill. Who cares if China is assembling all the things we design and have built as long as we are the designers and ones having it built. If we design things and have them built to our standards where the labor is cheapest, that means more profit is able to come home to us. If untrained assembly line workers here wish to compete for those minimal skill jobs, more power to them. If we can get things built here for the same or similar cost, we save in shipping the stuff from there to here.
Chinese will steal your design. I flew to Hong Kong several years back. Guy sitting by me told me a story how is company moved manufacturing of air powered hand tools to China and almost went bankrupt. They found a manufacturer in China that could make complete tools. They closed factory in the USA and all looked pretty good until very similar somewhat better tools Made in China hit the market for much lower price. After the manufacturer of their tools acquired all the knowhow it built another factory and produced the tools under their brand. To save the company from bankruptcy they had to invest in designing new products and hire a guy from Taiwan familiar with the way of doing business in China to manage the Chinese operation. No single factory made more than two parts and was not told what it is for, the parts were collected and assembled into "kits" that were shipped to India for final assembly. There was no saving.
If you want to sell anything high tech to China you have to tell them how it works in great details (It is called "Technology transfer"). Then they will buy few things from you and later become your competitor. Here is a school example how it is done: Did China steal Japan’s high-speed train? - Fortune
You ate absolutely right about this aspect of it. The PRC is not playing on an equal field. They manipulate their money to promote cheap exports, and prevent imports. The labor rates aren't only cheap in PRC, several other countries can compete on labor. I really would like to see the US government relax environmental regs, taxes, and outlaw unions; to allow the US to compete. Sure, we won't do 100% of our own manufacturing, but at least then we can throw out a competitive bid. China and India are rapidly improving there logistics, infrastructure, and power grid; and they have skilled, plentiful labor, hungry for the work. We, as a country, have to be able to compete. We can't just say "buy American" for quality, because we can turn out crap product just as well as China can make quality products.