We are watching as more and more jobs flow off our shores, where products can be made cheaply. There are obviously issues with the differences in the cost of labor throughout the world, which are so great that it is an impossible chasm to cross, even using sophisticate robotic manufacturing processes. Even when the robotics can make things faster than the humans working for $5.00 per day the systems still have to be designed, built and set up which takes a lot more time than just sticking 100s of workers in a row and starting tomorrow. It is for this reason that the jobs, which require the least amount of skill are the first to go. The jobs flowing out of the country to greener or rather Blacker (as in un-environmentally friendly and operating at a profit). The problems with job losses and out sourcing are as much a factor of bad US policy as they are lower wages in those other nations. That is to say our over regulation in the United States is much to blame as it significantly raises the costs associated with manufacturing labor. In fact as I look at all the BS over regulation in the nation which is costing US Auto Makers billions a year in costs, I see a strangling of our American Productivity. Indeed it is not only in this industry, we have it in Car Washing too; my company; www.carwashguys.com . Many of these rules and regulations have been created thru legislation caused by Unions, Lobbyists and politicians. This has had so many unintended consequences that it often does not make sense to manufacture things in the United States. And some of this is due to the fact that the entire supply chain is under sometimes worse regulations. After all until recently you could not make a car without steal and look at the over regulation in Iron Ore Mining, Steal Mills, Rail Road and trucking. All this is part of the supply chain. As well as glass making, rubber and oil by-products needed for the vulcanization process. If you have to import all these things from abroad or have to pay too much for them thru shipping costs, it is no longer a viable business model at the current efficiency levels. That is to say cost of material, non-productive labor, energy costs, shipping and cost of compliance with over regulations and the latest problems with incessant lawyers and lawsuits scraping the crme yet providing little if anything to the bottom line. We are to blame for the outsourcing of American jobs, not those other nations who are welcoming the extra work. Think on this in 2006. |
