I am the Founder of the Reshoring Initiative: bringing jobs back to America. I am the retired President of GF AgieCharmilles. BS & MS MIT and MBA U of Chicago.
@michaelxpettis Michael,
Excellent!
You write that Chinese productivity is lower than U.S. In reaching that conclusion do you allow for the fact that Chinese FOB prices average about 35% less than U.S.? Thus the value added/hour in the U.S. is higher, creating an illusion of productivity.
Best!
@_jay_turner@Wellesley Jay,
The Reshoring Initiative tracks similar investment information on a broad range of products. See https://t.co/hJ0Ij7N1fi. If interested, let's cooperate. [email protected]
Best!
@circulartimedot That got thru. Why not the earlier ones?
Next article: Are Your Supply Chain Risks
Hiding In Plain Sight? Will be in Fab Shop Direct in July.
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Thanks!
@samanfarid Saman, great posts. Automation is absolutely essential. Other necessary actions: Get the USD down by 25%, massive shift from liberal arts degrees to technical apprenticeships and universal use of TCO, instead of price, for sourcing and siting. https://t.co/hJ0Ij7N1fi
@sr_nyc@mcbadfw@ReshoreNow Thanks, Louis! Our calculations show we can bring back 2 million mfg. jobs and have only a one time 2% CPI increase if companies use TCO to pick the low hanging fruit products.
@PIIE There were no efficiency gains from trade with China. Efficiency is output/unit of input. Offshoring to China decreased labor efficiency because Chinese productivity was so much lower. More energy is used for transport. More inventory. Price was reduced due to lower wages.
@JJuskoIW@ReshoreNow Thanks, Jill. Great to work with you and Laura at IW.
Companies that are interested in reshoring can go to https://t.co/hJ0Ij7N1fi or message me.
@sr_nyc@mcbadfw@ReshoreNow Thanks, Scott. If companies will make decisions based on TCO instead of FOB price, we can bring back millions of good jobs and only have a one time 2% CPI increase.
@BrookingsEcon@Aarondklein Aaron,
Excellent article. I would have liked to see some mention of the positive impact of a lower USD. Our analysis shows we can recover millions of mfg. jobs at the cost of a few % one time inflation if companies do the math correctly.
The revenue/employee data is relevant if the same work is done at each company. I believe Tesla is more vertically integrated, e.g. producing batteries.