wages vs shipping costs... - Saab Other Cars Bulletin Board - Saabnet.com
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I wonder about that also...
I know in the tech sector, the excuse to use Chinese manufacturing was the need to do that to sell there. The actual cost savings to assemble an iphone or whatever there vs here is not that huge compared to the margins on the product. It was more import regulations and supply chain issues (much of the electronics supply chain is now Chinese) that made it make sense.
Cars are a heck of a lot heavier to ship. But I suppose we do it anyway to export. I suppose for very labour intensive processes it saves a lot of money. There are many parts that go into a car... that said, much of this stuff could be automated nowadays. Once you use more machinery and fewer people, the rationale for outsourcing is less valid. I suppose breaking the union-driven "don't replace our (overpaid?) workers with equipment" thing... There was a funny "article" in The Onion a few years about outsourcing vs automation...
What I really don't get is hardwood flooring manufactured in China. Ok, bamboo I get. But maple? Oak? really? I suppose they must still use logs as ballast on ships going back (free shipping woo hoo!)... but they still have to pay to ship the processed flooring back over here. I just don't see how that saves $$ vs processing it here!
Posts in this Thread:
- Buick Regal, A1-turbo, Thu, 26 Feb 2015 15:16:52
- They are trying to move Buick into the Saturn niche, Tim, Thu, 5 Mar 2015 22:34:25
- Verano problem for Regal., Norm9-5, Thu, 26 Feb 2015 19:00:47
- Re: Verano problem for Regal., A1-turbo, Fri, 27 Feb 2015 06:05:37
- Optima moves, Regal sits - why?, Steve T, Fri, 27 Feb 2015 14:03:44
- Kia - Special Financing Mecca..., Mike Lynch , Sat, 28 Feb 2015 18:17:16
- Re: Optima moves, Regal sits - why?, dtechakacheaptech, Fri, 27 Feb 2015 15:05:20
- Different starting an average price points, A1-turbo, Fri, 27 Feb 2015 15:02:34
- My guess......, MI-Roger , Thu, 26 Feb 2015 17:29:35
- Re: My guess......, EGD , Mon, 2 Mar 2015 16:56:10
- Nothing like paying $2/hour for luxury car assemblers, MI-Roger , Tue, 3 Mar 2015 17:49:36
- Re: Nothing like paying $2/hour for luxury car assemblers, EGD , Wed, 4 Mar 2015 14:57:28
- Stereotypes, Steve T, Wed, 4 Mar 2015 09:43:50
- Re: Nothing like paying $2/hour for luxury car assemblers, dtechakacheaptech, Wed, 4 Mar 2015 06:47:36
- Forty percent of auto sector jobs are in Mexico., Norm9-5, Wed, 4 Mar 2015 06:46:34
- Re: My guess......, A1-turbo, Fri, 27 Feb 2015 06:08:28
- Regal sales are up 4,000 units over last year., Norm9-5, Thu, 26 Feb 2015 19:07:12
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