Foxconn boss: We're CROSSING Mexican border ... to bring TV-making jobs into US The head of Foxconn has reportedly said that he is confident that the group, which includes the Hon Hai unit busily making iPhones, will see its revenue grow by 15 per cent this year. Terry Gou also said that the group was expecting to invest 10 times as much in the US in 2014, Reuters reported local media including the …
Moving manufacturing *to* the US.. weird.
I also have to give them points on the ratio on the revenue profit increase. 5.1% revenue, 1.5% profit. Most companies here are seeing revenue decline, while profits are still increasing, indicating a screwing of the employees.
Foxconn is looking like a good role model for manufacturing now? I forgot to check the byline, is Rod Sterling a Reg Hack now?
I work with a number of people who have relatives in Mexico. They are afraid to go visit. If they do they wear old worn out clothes and get picked up on this side of the border by relatives. No Hable English.
It is a real shame. People used to go back and forth across the border and no one thought anything of it.
Some of the American borders towns are getting just as bad.
I've been hearing for quite sometime that the biggest drawback to manufacturing in other countries (as opposed to the US for US consumption is transportation costs and time. As wages rise in the more "traditional" (read: cheap labor) places, it's now actually more efficient and lower in cost to manufacture in the States. One of the big drawbacks to China is the time it takes to ship. From Mexico, it's a combination of crime (and extortion to guarantee safe passage) and fuel costs. And then there's the dollar vs. other currencies.
For quite awhile, there's been a shortage of machinists and certain other highly skilled workers in the manufacturing sector. Having the work done in the overseas shops wasn't working due to high reject rates and shipping times.
I guess those of us in the States will just have to wait and see. Likely that this might be a good start to seeing the US regain some of it's lost manufacturing capability.
Actually, a lot of it is due to the fact that the wages for even skilled labour in the US have been either flat for years or declining. There are so many unemployed (or underemployed) that when the bits you mentioned are factored in, the US starts to look competitive again.
Basically, the US accidentally its own economy so hard that companies feel they can now Amazon a workforce enough to make the US just like a developing nation.
Grand.
This has nothing to do with the Tea Party
What we’re seeing is big-business making a rational decision with regards to the collateral damage bad government and multinational enterprise has done to indigenous ecosystems.
For what it’s worth, this is all about America being the last place on earth with a stable, manageable environment, economy, and population (though not so happy about being a member of “managed pedestrian”).
Hopefully factory safety standards will be higher than in Mexico:
http://www.alternet.org/labor/after-20-years-nafta-thanks-nafta-what-happened-mexican-factory-workers-rosa-moreno
I'm not holding my breath though, since the T-publicans are so hell bent on eliminating "Gummint interference in the free market".
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