Manufacturing survival in US/ Canada

[amanbhai]

Alot of outsourcing going on these days, specially white color, & research related job. According to quality progress 3.5 mil US jobs have been moved to countries namely China, India, & Russia.
Now, thing is that manufacturing also moving through these countries because of high labour cost, medical expanses. etc
If this trend countinue ( as many beleive it will) will the manufacturing survive in these countries?

 

[Jen Kirley]

Alot of outsourcing going on these days, specially white color, & research related job. According to quality progress 3.5 mil US jobs have been moved to countries namely China, India, & Russia.
Now, thing is that manufacturing also moving through these countries because of high labour cost, medical expanses. etc
If this trend countinue ( as many beleive it will) will the manufacturing survive in these countries?

Manufacturing can survive, but large companies are bound to seek their least expensive plants. Costs are not just for labor, but for property taxes, power and adhering to environmental regulations, which are much fewer in developing countries.

Niche manufacturing can survive in small to medium sized companies, but these companies must learn to be more aggressive and sensitive to the various business and market forces than in the past. They must become savvy in controlling costs that have previously been taken for granted, which is why I write my articles.

I think in general we can expect to see downward wage pressure and/or increased productivity demands. For example, a salaried production manager job I applied for is quoted at least 12 hour days, 5 days a week. Since they proclaimed it up front, the salary is fair and teaching can also eat up that much time, I do not feel a sense of outrage at this demand.