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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMajor manufacturers abandoning China for U.S.?
http://www.latimes.com/business/money/la-fi-mo-manufacturers-abandoning-china-20120420,0,3679186.storyChina may no longer be the go-to place for American manufacturers looking for cheap labor and favorable policies. A new report shows many large companies are looking to move their production facilities back to the States.
Of the 106 executives surveyed by Boston Consulting Group, 37% said they were planning to or actively considering reshoring their factories in the U.S.
And thats just for U.S.-based companies with annual sales of more than $1 billion. Among manufacturers who make $10 billion or more a year, 48% of executives said they want to relocate operations back home.
The urge is especially pronounced among leaders of companies working in industries responsible for 70% of the goods imported to the U.S. from China: transportation goods, electrical equipment, furniture, computers and electronics and more.
Junkdrawer
(27,993 posts)The later two really won't help the economy that much.
gateley
(62,683 posts)Here's why: (from the article)
Not long ago, many companies regarded China as the low-cost default option for manufacturing, said Michael Zinser, a partner with the consulting group. This survey shows that companies are coming to the conclusion surprisingly fast that the U.S. is becoming more competitive when the total costs of manufacturing are accounted for.
Blame rising Chinese wages and increasingly complicated logistics. More than half of the manufacturers who said they would move factored in high labor costs; 92% said such costs will continue to rise.
More than four in 10 executives pointed to product quality, while 29% said it would be easier to do business in the U.S. About the same number also said that closer proximity to their customers would be an advantage.
Vogon_Glory
(9,084 posts)Complaints about poor quality are more widespread than many folks think. I'm a hobbyist, and one of the more common complaints I've heard about stuff made in China is that the Chinese manufacturers/sub-contractors like to cut corners and that quality control isn't that widely practised.
A piece of (bleep) is a piece of (bleep) whether it's made near Shanghai or here in Amurrica.
dmr
(28,321 posts)cheaper.
Wasn't glycol used to sweeten toothpaste? And lead found in children's toys? Tainted pet food & baby food? I always have a fear when I pick up a product made in China. My son brought home a jar of chopped garlic in olive oil. I threw it away. I just don't trust it.
And, in my rambling thoughts .... I wonder sometimes if they do some nefarious things to our electronics. A chip to steal info, or to spread disinformation - or whatever to mess with us. I've no idea what or if they can do things, all I know is I don't trust them.
As the song said in the 60s, "... don't attack America, wear it down gradually."
robinlynne
(15,481 posts)Vogon_Glory
(9,084 posts)Quite true, Chinese workers ARE demanding more. But there also comes a point where someone is given a choice between paying for a POS made overseas at a low price and paying for something better-made(but more expensive) here in the USA, SOME people will buy the better-made but costlier item because they want satisfaction and they don't want the hassles and lost time dealing with repairs of defective merchandise.
robinlynne
(15,481 posts)Psephos
(8,032 posts)If not, then that level of quality becomes the new norm. Then, after a while, they ratchet down another notch. This continues until the customer takes notice.
DCBob
(24,689 posts)The Chinese economic model has numerous break points.
Dawson Leery
(19,348 posts)notadmblnd
(23,720 posts)ctaylors6
(693 posts)Also, I'll believe it when it's fact. The survey said they were "planning to or actively considering" moving back. Those words don't mean squat to me, especially "actively considering." I know I'm probably cynical, but I want to know how many were actively planning vs actively considering.
treestar
(82,383 posts)Maybe they are finally starting to see the problems that result from that.
GeorgeGist
(25,294 posts)Auntie Bush
(17,528 posts)if Romney is elected...he'll get all the credit. Ugg! Horrible thought! Then Romney will get 8 years to destroy our middle class and poor. That thought is so repugnant...I can't think about it or I'll be sick to my stomach!
robinlynne
(15,481 posts)factor in shipping.
This survey shows that companies are coming to the conclusion surprisingly fast that the U.S. is becoming more competitive when the total costs of manufacturing are accounted for.
justgamma
(3,660 posts)Record breaking transportation costs ate up the savings from labor. That is why, I don't get upset from higher gas prices. Jobs come back to the US.
lpbk2713
(42,696 posts)Every one I looked at at was made in China. I came home empty handed.
I'm sure there are many products that slip by me but as long as I am aware
of the point of origin I will be careful about what I buy and use if it has
anything to do with food or medicine.