Re:Why Wages Aren’t Growing
by dsfyu404ed on Friday September 22, 2017 @08:37AM
(#15311573)
It's going to depend on the widget.
No matter how you cut it there's less overhead in those countries.
Depending on the nature of the good and the scale it's almost impossible to have the price of the good be competitive when it gets to the first world.
At high volume it's easy to amortize the cost cost of teaching a factory in overseas how to make for example a high quality forging that a first world supplier could produce properly the first time without asking questions.
If you're gonna need to make a different forging every year then you might want a supplier closer to home that you don't have to hand hold.
If you're making something with less safety/environmental overhead than the steel forging then that tips things less in favor of off-shoring.
No matter how you cut it there's less overhead in those countries.
Depending on the nature of the good and the scale it's almost impossible to have the price of the good be competitive when it gets to the first world.
At high volume it's easy to amortize the cost cost of teaching a factory in overseas how to make for example a high quality forging that a first world supplier could produce properly the first time without asking questions.
If you're gonna need to make a different forging every year then you might want a supplier closer to home that you don't have to hand hold.
If you're making something with less safety/environmental overhead than the steel forging then that tips things less in favor of off-shoring.