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re: Why Manufacturing in China?
Posted on 4/4/20 at 7:38 am to Bestbank Tiger
Posted on 4/4/20 at 7:38 am to Bestbank Tiger
Cheap Kong maka chapa crappa.....buy mo stufa...maka you fell better
Posted on 4/4/20 at 7:50 am to pizzathehut
Labor is much less of an issue now. The percentage of cost of goods that is attributed to labor is far less than it was 20 years ago, and wages in china are far greater.
I also think that was part of the provisions in the latest tax cuts. If you can capitalize a piece of equipment in the first year vs depreciating it, you dont need to have 3 lower skilled chinese manually doing the process. Hence the breakeven to come back to the states starts to make since, particularly when you throw in shipping.
And now that they have seen the cost of business disruption, it should be a no brainer to move closer to home.
If not then shame on them and let them swim on their own the next time this happens, and there will be a next time, chini has done this three times already....and gotten away with it....three times.
I also think that was part of the provisions in the latest tax cuts. If you can capitalize a piece of equipment in the first year vs depreciating it, you dont need to have 3 lower skilled chinese manually doing the process. Hence the breakeven to come back to the states starts to make since, particularly when you throw in shipping.
And now that they have seen the cost of business disruption, it should be a no brainer to move closer to home.
If not then shame on them and let them swim on their own the next time this happens, and there will be a next time, chini has done this three times already....and gotten away with it....three times.
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