Thursday, October 23, 2014

If you can make it here

It'll probably be because it's more cost effective, all things considered, says the Boston Consulting Group (they get paid to tell businessmen this?);

U.S. manufacturers are increasingly considering factors other than direct costs such as labor when they devise their production strategies. More than 70 percent cited better access to skilled talent as a reason for moving operations to the U.S.—more than four times as many respondents as those who cited access to talent as a reason for relocating production outside the U.S. For goods that would be sold in the United States, around 80 percent cited logistical reasons such as shorter supply chains and lower shipping costs as primary reasons for moving operations to the U.S. from other countries. 

“We have long advised companies to look at the total cost of manufacturing in the U.S. and to consider the entire supply chain—not just the obvious factors such as wages,” said Michael Zinser, a BCG partner who leads the firm’s manufacturing practice in the Americas. “When companies take a holistic view, the U.S. increasingly comes out ahead, particularly if those products are to be consumed in the U.S.”
Which they did many years ago and concluded it made sense to move their manufacturing overseas. Now things have they have always done....

Unless you're Thomas Piketty, you knew that.

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