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My Opinion on Manufacturing: It Is Coming Back - Really!

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benmlee
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Re: You nailed it.
benmlee   2/11/2014 4:41:49 PM
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Natural gas price is low because of hydraulic fracking. That can come with environmental devestation that is impossible to reverse. We are too afraid to do any study at this point because we don't want to hear results we don't like.

Natural gas price is low because we do not have LNG terminal to export the natural gas, so we ride on a wave of cheap gas. Glad this is helping our country by bringing manufacturing back.

However, lobbyist are trying hard to cut the recovery off at the knee by building more LNG ports. Texas is leading the nation in this self destruction with their LNG port in Freeport Tx.

That is really unfortunate because while we might be willing to trade some environmental risk for a huge US economic recovery, but we are trading environmental risk to help other countries get cheap natural gas, and tanking our manufacturing sector at the same time. With this LNG port, we will be doing even more hydraulic fracking to deplete our natural resource, potentially seriously poison our environment, and not help our manufacturing.

Yes, Obama approved the Freeport LNG port in Tx.

taimoortariq
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Gold
Re: Made in U.S.A.
taimoortariq   1/31/2014 11:15:35 PM
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That is a nice point, I guess these restrictions can sometimes be misleading as well. You are right that now a days its almost too good to be true to make a 100% indegenous product with ones own resources, or even 90% for that matter.

taimoortariq
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Re: Outsourcing
taimoortariq   1/31/2014 11:05:59 PM
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Yes, and as the article says, we have the advantage of cheaper utilities on our side that can help us bring back the manufacturing.

NadineJ
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Platinum
Made in U.S.A.
NadineJ   1/31/2014 2:01:00 PM
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I attended an interesting panel discussion about the rules and pitfalls of labeling products 'Made in U.S.A."

It seems as if the FTC (Federal Trade Commission) may be relaxing some of the rules.  In California, the restrictions are a little higher.  I believe the numbers are 90-95% of the manufacturing and components have to be made in USA for the labeling to be legal.  For fabric based goods the rules are a little different.

That's impossible for most manufacturers.  The raw material just isn't available locally.

NadineJ
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Platinum
Re: Outsourcing
NadineJ   1/31/2014 1:53:24 PM
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Good point. I've said it before.  Small and medium production will come back if the talent is here.  But, mass-production is still done best and cheaper outside of North America.

taimoortariq
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Gold
Re: Large items
taimoortariq   1/30/2014 12:39:43 AM
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Yes, I hear that also. It makes little sense to shift the manufacturing of big products with medium production rate to a another country. One could imagine the shipping costs that can incur.

taimoortariq
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Outsourcing
taimoortariq   1/29/2014 2:55:18 PM
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Its nice to see a change in the manufacturing trend. As far as the reason of outsourcing the work is concerned, most companies are outsourcing there work to china (including Apple) not majorly because the labour work is cheaper there, It has more to do with the production rate of the the products.Presently the manufacturing power in a country like China is way too much to match that of US, which gives a much higher production rate to the company.

tluxon
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Gold
Re: More info on reshoring coming up at Design News
tluxon   1/29/2014 1:34:28 PM
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Great post, Wayne.

The answer to the speculation in your prior post -

"This makes me wonder how much management thought really goes into moving production offshore.  I suspect that much of it is because "everyone else is doing it, so I guess we better, too."  Besides that, maybe they are not good at math."

- lies in between the spaces you omitted from this one.

"what i am going to say now probably will really p.o. a lot of people, but i think one reason for this wholesale flight to llc's is the rise of management as an profession in its own right.

admittedly, i have a masters in systems management from southern cal, but time was,you did not hire "managers."  instead, you learned how to do something, engineering, or something, and after you got good enough at it for long enough you got into management.

a person with that kind of background would no more think of shipping the work overseas than they would consider a port-a-potty as a replacement for his bathroom at home.
but bring in professional "managers" trained in college to manage things, and i think they often decide that all that messy factory stuff on the other side of the wall is just a big nuisance.

and yes, the fact is "communist" china is more capitalist friendly that the us when it comes to opening new factories."

My take:  They're not bad at math - they've just been able to rely on the fact that most of us are distracted and trusting them to make the "right" decisions.  The concept of being college-trained for any such management positions facilitated the rollout of a centralized objective.  For a long time now that purpose was to use the middle class to develop advanced technologies for the elite aristocracy before breaking down that middle class to a much lower globally equal level from which the above-the-law elites could better manage the workings of the world after the design of their "superior" vision.

Time will tell how long they'll be able to stick to the roadmap, but so far things have gone pretty much according to the blueprint.

It's fascinating when you think about it and might help explain what otherwise makes so little sense.

ttemple
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Platinum
Re: More info on reshoring coming up at Design News
ttemple   1/29/2014 12:21:14 PM
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Wanye,

I think a couple of your keys are stuck.  I don't the big one across the bottom with no letters on it is working for you.

becauseofthatican'treadyourwholepostbecauseitgetscutoffattheedgeofthebrowser!

Wayne Eleazer
User Rank
Gold
Re: More info on reshoring coming up at Design News
Wayne Eleazer   1/29/2014 11:55:25 AM
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bobjengr:
whatiamgoingtosaynowprobablywillreallyp.o.alotofpeople,butithinkonereasonforthiswholesaleflighttollc'sistheriseofmanagementasanprofessioninitsownright.
admittedly,ihaveamastersinsystemsmanagementfromsoutherncal,buttimewas,youdidnothire"managers." 
instead,youlearnedhowtodosomething,engineering,orsomething,andafteryougotgoodenoughatitforlongenoughyougotintomanagement.
apersonwiththatkindofbackgroundwouldnomorethinkofshippingtheworkoverseasthantheywouldconsideraportapottyasareplacementforhisbathroomathome. butbringinprofessional"managers"trainedincollegetomanagethings,andithinktheyoftendecidethatallthatmessyfactorystuffontheothersideofthewallisjustabignuisance.
andyes,thefactis"communist"chinaismorecapitalistfriendlythattheuswhenitcomestoopeningnewfactories. asidefromthereducedregulatoryburdentheyhavevastlysuperioramatorizationpolicies;youcanwriteoffanewplantinjustafewyears.           

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