Chart usGOLD   Chart usSILVER  
 
Food for thought
Mundus vult decipi, ergo decipiatur (the world wants to be deceived, so let it be deceived)
Anonymous  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1213.915.93
Silver 17.190.24
Platinum 1276.40-17.40
Palladium 775.204.95
WORLD MARKETS
DOWJONES 16805-236
NASDAQ 4422-71
NIKKEI 16082-91
ASX 533538
CAC 40 4365-51
DAX 9382-92
HUI 1961
XAU 810
CURRENCIES (€)
AUS $ 1.4449
CAN $ 1.4094
US $ 1.2618
GBP (£) 0.7798
Sw Fr 1.2066
YEN 137.4630
CURRENCIES ($)
AUS $ 1.1451
CAN $ 1.1169
Euro 0.7925
GBP (£) 0.6180
Sw Fr 0.9562
YEN 108.9360
RATIOS & INDEXES
Gold / Silver70.62
Gold / Oil13.58
Dowjones / Gold13.84
COMMODITIES
Copper 3.04-0.02
WTI Oil 89.36-0.40
Nat. Gas 4.02-0.10
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
In the same category
Apple to Relaunch Manufacturing in US, Net Result +200 Jobs; Lights Out
Published : December 12th, 2012
505 words - Reading time : 1 - 2 minutes
( 1 vote, 5/5 ) Print article
 
    Comments    
Tweet
Keywords :   China | Gold | India | Lead | Oil |

 

 

 

 

In bits and pieces, manufacturing is returning to the US. Unfortunately, jobs (at least human jobs) are not returning as well.

For a case in point, the Fiscal Times reports
Apple’s Big Manufacturing Boom to the U.S. — 200 Jobs.

At the end of last week, CEO Timothy Cook announced that Apple intends to invest $100 million next year to relaunch part of its manufacturing operations in the US.

Apple and Foxconn, the contractor responsible for manufacturing iPhones, iPads and a host of other Apple products in China and other countries, is expanding its existing operations in America to build Mac computers. How many jobs will it create? About 200—a number that wouldn’t even get you noticed in the Fortune 1000.

Last year the Boston Consulting Group published a study forecasting a “
manufacturing renaissance” in the U.S. as China’s wage rates and currency rise, skilled workers grow scarcer, and U.S. productivity maintains a strong lead over China’s. Apple thus joins a group of U.S. companies—Caterpillar, Ford, NCR—that have already reckoned that “Made in USA” makes good business sense.

Something important is happening here. With the rapid emergence of China, India, and other developing countries as “middle income nations,” the classic cheap-labor-for-exports model is losing its primacy. So, it appears, is the automatic assumption that wage rates more or less dictate where a manufacturer will locate. As Boston Consulting argued, in the future companies such as Apple will manufacture in China for the Chinese market and in America for American consumers.

It will be interesting, with these studies in view, to see how manufacturing fares in the U.S. in coming years. We still have 2 million fewer manufacturing jobs than we did pre-crisis back in 2007. And do not forget: Apple is all about iPads and iPhones now; the Macs coming back account for less than a fifth of its revenue. It still promises some jobs. But what is good for Apple may not prove good for everybody making things.
This is not the beginning of a gold rush.

Forces in Play

1.       Rise in labor costs abroad

2.      Theft of intellectual property

3.      Productivity

4.      Automation

5.      Shipping costs

6.      Diminishing tax advantages of overseas production


Each point above provides incremental reason to repatriate manufacturing. Whether jobs return as well is another matter.

Lights Out

Labor costs are on the rise in China on a relative, if not absolute basis vs. the US. Concerns. Theft of intellectual property by China remains a serious concern. The higher the price of oil, the higher the shipping costs. Corporate tax advantages of overseas production will likely be negotiated away in Congress.

However, the standout reason for the return of manufacturing to the US is automation. What used to take 20 workers may now only take 4 and in a few years 1.

The actual numbers are irrelevant, the enormous trend towards
lights-out manufacturing and robotics is not.

The more robots are in use, the more labor costs are irrelevant, and the more manufacturing will return. It's that simple.


 

 

Data and Statistics for these countries : China | India | All
Gold and Silver Prices for these countries : China | India | All
Tweet
Rate :Average note :5 (1 vote)View Top rated
Previous article by
Mish
All articles by
Mish
Next article by
Mish
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
MOST READ
TOP RATED
MOST COMMENTED
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Mish

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit http://www.sitkapacific.com
Mish ArchiveWebsiteSubscribe to his services
Most recent articles by Mish
10/1/2014
10/1/2014
10/1/2014
10/1/2014
9/30/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer