Only countries who's economic system is more restrictive upon business than the United States seem to be moving here.
I would have to take exception to that. Just because a company is located where the business climate is worse than here doesn't mean they are likely to relocate here. They are likely to bypass us and relocate where it is best for them. We are doing a terrible job at competing for industry.
Sorry Thump, we are seriously slow at the moment. Staff is down to 4 including the owner and his son..
If we get busy you want me to ping you,
the job requires travel, and you must pass 2 tests, a screening test on 2 1/2" s 40 cs pipe (6G) and then a sched 80 or 120 on 6" pipe 6 g position with a 6010 root pass, and a 7018 fill and covers, the coupon cant be moved until completed, the weld is then cut and bent double on a fixture in the shop with no cracks or flaws over .125" in length
Back in '77 I got certified 6G (all position) on 6" sch40 pipe with a MIG welder. Never could do stick worth a dang. My typical attempts at stick sounded like this "Bzzzt - $hit! Bzzzzt - crap! Bzzzt - #@&%" Being a good welder is a skill that you can always fall back on.
Our productivity causes our manufacturing to require fewer people.
Our regulatory and taxation environment causes our manufacturing to afford fewer people.
Companies, foreign and domestic, want our employees, but can't afford them.
If we want the United States to be the center of the manufacturing, we need to create an environment conductive to a corporation locating it's manufacturing here. We simply CANNOT maximize labor in manufacturing via only our own production and products.
Here's what I am talking about:
As American workers become more productive, fewer employees are needed. As fewer employees are needed, the supply of workers for available jobs increases. As supply rises in relation to demand, wages fall. The ONLY way to get wages to increase is to increase demand.
We MUST increase the foreign demand for highly productive, US workers.
Some will say, why are US manufacturers not simply producing here?
The issue is that if 100% of the products contained US labor, the products themselves would reflect the US labor costs.
Here are those costs by industry:
More people hired, higher demand, higher wages, what's the problem. The problem is that the price of goods sold is also more expensive. In essence, higher wages are nullified by higher product product prices. You will make more money, but you won't be able to buy any more products with it than you did before.
The only way to have wages rise in relation to products purchased is to have products made in the US by foreign companies using US labor.
Although our wages are higher, our productivity relative to those wages is attractive globally.
Here is a wage/productivity chart:
What it is showing is the relation of the wages and productivity of other nations in comparison to the US.
For the us, the wages were locked at 100 and the productivity was locked at 100. In essence, one average dollar of US wage bought one average dollar of US productivity. In comparison, to other countries how did we stack up?
Labor ratios above 100% in unit labor cost means that you have to pay more per unit of US wage than in the US to get one unit of US labor in THAT COUNTRY.
Sweden is only 72% as productive as US workers.
Even though Chinese wages are abysmally low compared to the US, Chinese productivity is also only a fraction of that in the US. Therefore, in the wage/productivity category, China is only 129% as productive as the US.
Look at the relative wage/productivity numbers and see which countries are heavily below that of the US. Looks like a list of who's who in manufacturers of product in the US.
I believe that the US can make up many of these gaps in wage/productivity to place the US in a more competitive global position by making it more profitable and financially optimal to locate a manufacturing plant in the US. Given the stability of the US, the legal system, the stable political system, the US is a MUCH safer bet than other countries.
The relevant fact is that "China's most favoured nation status was made permanent in 2000."
Also
"Following the massacre of pro-democracy demonstrators in Tiananmen Square in 1989, however, the annual renewal of China’s MFN status became a source of considerable debate in the Congress; and legislation was introduced to terminate China’s MFN/NTR status or to impose additional conditions relating to improvements in China’s actions on various trade and non-trade issues."
Before 2000 under Clinton, MFN status was a HUGE means to influence policy in China. Once permanent, not so much, and permanence paved the way for China to enter the WTO.
One, it appears, salient characteristics of Chinese manufacturing is the lack of consistency.
The potential exists for American manufacturing to once again be synonymous with "the best" and the be the envy of the world.
But, this will require a huge change in mindset and it won't look like it did in the golden days of GM, GE and Westingthouse.
It will require both technical change, the easy part, and cultural change, the hard part.
Folks are generally somewhat open to technical change. Cultural change, the idea of working hard, having a plan, team work, striving toward a common goal and, generally, those things that have, in recent years, yielded to the "screw the group, what's in it for me" mindset . . well, they'll be harder to change.
The mere fact that this potential exists means that some of the greatest opportunities to amass fortunes lie at our feet.
Facebook is an excellent example. 3,000 employees, no union in sight (in fact, they laugh at the entire concept of "union" when someone tried to explain to the employees they could "lock arms and get what they demanded", Tough to convince 1,000 folks who were students 5 years ago and worth $25,000,0000 today that they need a fat guy from Boise in a Crown Vic to negotiate for them.
We will need to seize the brass ring of independence, intelligence, confidence, collective ethics, pride and a commitment to purpose.
Those who can see over the horizon (it's visible from East Troy, WI) and who can understand the way the world has changed will lead. Those who, like a 45rpm record returning to the first groove, chant the mantra of "that's the way we've always done it", are relegated to being byproducts of the process.
These are the most exciting times I've seen in my 58 years. The last year has been illuminating. Minds have grown, visions have gained clarity, values have been reinforced and opportunities abound. I knew I had another chapter coming, I just didn't know when.
