The idea of an American manufacturing resurgence is absurd. To whom do you sell products at like 10x of what China produces these products for?
No, automation is not going to save you. Cheap labor, great engineers and energy are the key to manufacturing competitively. The US has none of that. Some EU countries still have the engineers, but labor and energy is prohibitively expensive.
Because China has a greater growth of productivity and also less costs.
China has cultivated a culture of excellence in engineering, especially in manufacturing, which outclasses everything the US has. The greater productivity gains will happen where the best engineering talent is, China. That China has cost advantages only make an US attempt at competition more ridiculous.
China is already the best in the world at making most things. The idea of overcoming that by just increasing productivity a bit is absurd.
China built up a world class EV industry in about a decade. The US only has a car industry because it bans competition.
Almost every single consumer product is made in China. Almost no consumer products are made in China.
Mechanical engineering, especially manufacturing, has been totally overshadowed in the US by Software, as it is a low demand skill since no company is manufacturing in the US. China has a workforce of some of the best engineers in the entire world, which continue to drive down prices in all markets.
That's all irrelevant. When you use robots instead of actual people, you don't need that large manufacturing force - I mean, that many people in direct manufacturing. People will work on robots, yes - but robots will work on products. I'm greatly simplifying, of course, but the current state may mean little when we talk about changes.
China has better robots and is better at utilizing them, since they actually have a large workforce of engineers who do manufacturing. Those engineers do not exist in the US.
It is also delusional to think that humans can be replaced by robots, robots are expensive and even right now car manufacturers in Europe, with very high labor costs, can not afford to replace humans with robots.
China's advantage is not that their labor is cheaper. It is that they are outclassing the US in engineering, especially automation, and they have a cheaper labor force.
https://archive.ph/3TnNe
The idea of an American manufacturing resurgence is absurd. To whom do you sell products at like 10x of what China produces these products for?
No, automation is not going to save you. Cheap labor, great engineers and energy are the key to manufacturing competitively. The US has none of that. Some EU countries still have the engineers, but labor and energy is prohibitively expensive.
Why don't you think the growth of productivity can't reduce the products costs below the alternatives?
There is more to it than just a dollar cost per product.
Outsourcing is attractive, because then you don't need to care about all the environment protection violations and any other exploitations.
Your local customers don't begin to resent you for poisoning their water.
Because China has a greater growth of productivity and also less costs.
China has cultivated a culture of excellence in engineering, especially in manufacturing, which outclasses everything the US has. The greater productivity gains will happen where the best engineering talent is, China. That China has cost advantages only make an US attempt at competition more ridiculous.
China is already the best in the world at making most things. The idea of overcoming that by just increasing productivity a bit is absurd.
We live in different universes.
China built up a world class EV industry in about a decade. The US only has a car industry because it bans competition.
Almost every single consumer product is made in China. Almost no consumer products are made in China.
Mechanical engineering, especially manufacturing, has been totally overshadowed in the US by Software, as it is a low demand skill since no company is manufacturing in the US. China has a workforce of some of the best engineers in the entire world, which continue to drive down prices in all markets.
That's all irrelevant. When you use robots instead of actual people, you don't need that large manufacturing force - I mean, that many people in direct manufacturing. People will work on robots, yes - but robots will work on products. I'm greatly simplifying, of course, but the current state may mean little when we talk about changes.
China has better robots and is better at utilizing them, since they actually have a large workforce of engineers who do manufacturing. Those engineers do not exist in the US.
It is also delusional to think that humans can be replaced by robots, robots are expensive and even right now car manufacturers in Europe, with very high labor costs, can not afford to replace humans with robots.
China's advantage is not that their labor is cheaper. It is that they are outclassing the US in engineering, especially automation, and they have a cheaper labor force.