Good objective article on US-based manufacturing in these uncertain times

This very off-topic and I mean no harm to anyone. If anyone gets offended, I recommend to look into a mirror and reflect on why that is.

I found this to be a good article about how the new tariffs are helping (or not) our US-based manufacturers.

https://www.sparkfun.com/news/2743#comment-5b653cb757bce2554e1192d3

I can’t speak openly about the place I work at, but I know there has been some praising about the decisions made years ago to manufacture almost everything overseas.

Based on their (SparkFun) projections of the outcome (more sourcing from Mexico) it seems the tariffs will have the desired effect (by Trump).

So you reduce the deficit with China by increasing the deficit with Mexico and pay more for the privilege of doing so… what ever about Trump’s agenda it does nothing for the consumer.

I did make special effort to say it was Trumps desired effect: that is to weaken China by spreading our trade around.

Thought it was to reduce the deficit and bring jobs home. But anyways…

“He” does not want to see so many BM£W cars in New York, but what about:
“Spartanburg manufacturing plant. The BMW US Manufacturing Company, also known as BMW Spartanburg, is a vehicle assembly facility for BMW Group and is located in Greer, South Carolina; it is BMW’s only assembly plant in the United States.”

He want to see US Cars in Europe ? But the product is not apropriate for the Europe (too expansive, too many gallons a mile :frowning: Let me laugh (I’m French) or cry (If I was a US Citizen/ US worker)

Next round of taxes: iPhones from China ? To get work for the US workers ? No, I do not want to cry :frowning:

It’s a shame !

Economics specialist says everybody will loose if “he” goes that way.Will the 45° president stays for a second time ? Will work of the 45° president work stays after the coming of the 46° ? I do not think so.$$But… who am I to make these predicts ?

It would be nice to have a friendly off-topic discussion about this, wouldn’t it? Let’s see how long we can keep it civil before someone makes it personal or calls someone a Nazi.

First person to slip up buys us all a beer!

I do not think there is a single objective or single perspective. The lens of some is that we need to bring jobs back and support our own citizens. For others there is great concern of our dependence on China and its overall strength in the World. There are other perspectives.

I personally can see most sides and understand how we got here. Whether it is economically sound or not I do not know.

Will bringing jobs back to the USA be popular with the rest of the world…of course not.

Is it right and will it work…only time will tell

My perspective is that those jobs are pretty much lost - forever - regardless of what the White House wants. Workers are cheaper elsewhere and many countries don’t have the same environmental regulations as the US. As Americans we want our cheap goods and no one wants a steel mill in their community (trust me on this one, I worked in Gary, IN in the late 80’s in the steel mills and they create toxins in the air, soil, and water).

Another topic that no one talks about is baby boomers retiring. A reason why the US unemployment rate is currently so low is that they’re retiring and there is not enough replacement workers. So even if we wanted to bring back all manufacturing to the US there aren’t enough workers to do so. Whereas in some countries there aren’t enough jobs for the population so it’s advantageous for a company to be there because it holds wages down and have little need for automation (I’ve seen food production facilities in the US with high employment costs vs Nigeria with very low employment costs and guess which has more people?).

One of the last bastions of good paying blue-collar jobs is the truck driver. We have friends that do IT for a medium sized trucking company and they’re begging for drivers. Young drivers just aren’t being created and the good drivers are retiring. This is why I think self-driving trucks will hit the interstates in less than 10 years because companies will have no choice if they want to ship their products cross country (rail is only a partial solution). So I think employment in the US is going to contract significantly and there’s not much we can do about it. Getting manufacturing back at any scale in the US is a pipe dream.

FWIW, I’m not saying we should do nothing, but it seems like this argument should have been made 40 years ago when much of the manufacturing started going elsewhere. Not sure there is a way to put the genie back in the bottle.

The Romans understood the need for free bread and circuses… Today it is good jobs and lots of cheap sh*t, but that is not compatible with the free market model in the US! The same is true of Europe, but to a lesser extent as intervention is more acceptable, for example the EU structural fund. In the end though it is hard to see how this model can continue - Generating income to buy cheap stuff while loosing jobs at the same time.

[quote=399279:@Emile Schwarz]He want to see US Cars in Europe ? But the product is not apropriate for the Europe (too expansive, too many gallons a mile :frowning: Let me laugh (I’m French) or cry (If I was a US Citizen/ US worker)[/quote]When a European car is imported into the USA there is a 2% tariff applied to it, when a US car is imported into the EU there is a 10% tariff applied to it. As I understand it that’s Trump’s gripe.
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[quote=399307:@Bob Keeney]Getting manufacturing back at any scale in the US is a pipe dream.[/quote]It never went away. Manufacturing is still by far the largest sector of the US economy (around 36% of GDP, nearly twice the size of the next largest sector). In the World US manufacturing is second only to China. The value added by US factories is equal to Japan, Germany and South Korea combined. The reality is the output of US factories has doubled since 1984, they just employ many fewer people to achieve it. The USA’s top manufactured good is refined oil, as well as that there’s pharmaceuticals, airplanes, automobiles, machinery, iron, steel, plastics, organic chemicals, petrochemicals, …

You shouldn’t need a Limey to point this out :wink:

[quote=399291:@Gavin Smith]First person to slip up buys us all a beer![/quote]Mine’s a cloudy cider (Thatchers Haze), thanks :slight_smile:

Thatchers recently planted 25,000 new trees so you’re helping the environment as you sup.