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To what extent would all of these new U.S. factories be automated and/or have shite pay?
Posted on 4/5/25 at 10:11 am
Posted on 4/5/25 at 10:11 am
It's anecdotal, but the county commission here spent a bunch of money about 10 years ago on a new spec building. I pass it everyday. There were no takers for a long time, and then a company finally agreed to move in and take the 10 dollar a month lease on the building.
The county commissioners were excited and started chest bumping. But then it opened, and it's the same 8-10 cars parked in the parking lot everyday, even though there are 18 wheelers coming in and out of the loading dock every day. Out of the little handful of jobs there, most of the employees transferred in. It was pretty much a complete waste to local tax money.
To what extent would this be the reality if all of these companies magically decided to move manufacturing to the U.S.?
Then, there are the other anecdotes about new manufacturers taking over old plants in a town that used to employ a bunch of people at solid wages. The old employees are excited and can't wait to go back to the old plant, until they realize that many of them would be starting out at fast food wages.
It's all anecdotal and I really don't know the answer, which is why I guess I'm asking.
The county commissioners were excited and started chest bumping. But then it opened, and it's the same 8-10 cars parked in the parking lot everyday, even though there are 18 wheelers coming in and out of the loading dock every day. Out of the little handful of jobs there, most of the employees transferred in. It was pretty much a complete waste to local tax money.
To what extent would this be the reality if all of these companies magically decided to move manufacturing to the U.S.?
Then, there are the other anecdotes about new manufacturers taking over old plants in a town that used to employ a bunch of people at solid wages. The old employees are excited and can't wait to go back to the old plant, until they realize that many of them would be starting out at fast food wages.
It's all anecdotal and I really don't know the answer, which is why I guess I'm asking.
This post was edited on 4/5/25 at 10:13 am
3
Posted on 4/5/25 at 11:28 am to Violent Hip Swivel
shite pay for the grunts. Good pay for the people who know how to fix the machines. Machinery mechanics can easily pull in six figures, especially if you're willing to travel. There is a glut of good mechanics. No shortage of grunts to push carts around. Supply and demand.
It used to be i needed skilled CNC operators, but now I only need someone to load/unload because our order entry software communicates directly with the CNC to tell it what to make. $20k one-time software license and $5k annual support vs. $60k annual for an operator.
AI is also helping us catch more errors during order entry, so the CNC guys are even less valuable.
It used to be i needed skilled CNC operators, but now I only need someone to load/unload because our order entry software communicates directly with the CNC to tell it what to make. $20k one-time software license and $5k annual support vs. $60k annual for an operator.
AI is also helping us catch more errors during order entry, so the CNC guys are even less valuable.
Posted on 4/5/25 at 12:08 pm to Violent Hip Swivel
I worked in manufacturing for about fifteen years then worked in technical sales in Industrial Automation.
All of the manufacturing companies I worked for spent much more money on automation IN MEXICO. When they sent product lines there, they bought the best equipment and facilities and invested in extended training and every ergonomic and automation advantage they could. In the US, they bought the cheapest equipment, trained employees on the job, and operated sweat shops.
One company moved products to Mexico even though their costs were higher there, because materials and shipping costs were higher in Mexico and there wasn't enough labor in the product to offset the increase in materials and shipping costs. I later learned that another company had been trying secretly to buy that company, and a year or so later the board voted to reincorporate in the Bahamas so that they could rewrite the corporate by laws so that shareholders did not have any voting rights in the event of a hostile takeover. The board was very highly compensated than other companies, and the stock price was flat throughout the 1990's.
So, anyway, some of all this crap is about things that aren't really about business and economics. Such as every new CEO moves the corporate HQ. There's always money for that, but not to improve the plants.
I will say the company I mentioned above went first class on safety and environmental. It was a corporate requirement and they did that part better than anywhere I ever worked.
All of the manufacturing companies I worked for spent much more money on automation IN MEXICO. When they sent product lines there, they bought the best equipment and facilities and invested in extended training and every ergonomic and automation advantage they could. In the US, they bought the cheapest equipment, trained employees on the job, and operated sweat shops.
One company moved products to Mexico even though their costs were higher there, because materials and shipping costs were higher in Mexico and there wasn't enough labor in the product to offset the increase in materials and shipping costs. I later learned that another company had been trying secretly to buy that company, and a year or so later the board voted to reincorporate in the Bahamas so that they could rewrite the corporate by laws so that shareholders did not have any voting rights in the event of a hostile takeover. The board was very highly compensated than other companies, and the stock price was flat throughout the 1990's.
So, anyway, some of all this crap is about things that aren't really about business and economics. Such as every new CEO moves the corporate HQ. There's always money for that, but not to improve the plants.
I will say the company I mentioned above went first class on safety and environmental. It was a corporate requirement and they did that part better than anywhere I ever worked.
Posted on 4/5/25 at 1:46 pm to Violent Hip Swivel
When the AI and robots are doing all (most) of the work, it will be imperative to have as much production and jobs as possible in the USA.
So, either going rate pay or automated is fine as long as we are making more products here.
So, either going rate pay or automated is fine as long as we are making more products here.
Posted on 4/5/25 at 3:16 pm to Woolfpack
quote:
When the AI and robots are doing all (most) of the work, it will be imperative to have as much production and jobs as possible in the USA.
So, either going rate pay or automated is fine as long as we are making more products here.
That's important in many cases but definitely not all cases. For example, there's currently not a single plant in the U.S. that makes air fryers. Tariffing air fryers to hell and back seems like a terrible jobs creation program.
Posted on 4/5/25 at 6:58 pm to Violent Hip Swivel
The fact we dont make air fryers should be more concerning than not making heart medication.
It’s like cause and effect dude.
It’s like cause and effect dude.
Posted on 4/5/25 at 7:05 pm to Woolfpack
We have had technology for years to automate the production of most things. It's always a question if it's cost effective.
We could have built a burger flipping machine in the 70s but it never made any sense.
We could have built a burger flipping machine in the 70s but it never made any sense.
Posted on 4/5/25 at 7:13 pm to Violent Hip Swivel
quote:
For example, there's currently not a single plant in the U.S. that makes air fryers. Tariffing air fryers to hell and back seems like a terrible jobs creation program.
Can we make ours actual fryers vs tiny ovens?
Posted on 4/5/25 at 10:03 pm to fallguy_1978
quote:
Can we make ours actual fryers vs tiny ovens?
I'm sure we can but, is it economically viable to build a factory and hire a workforce at $25+/hour?
Wonder if some businesses will find they can pass some of the tariff to consumers and still be profitable to manufacture in China or wherever.
Hopefully some of our members who import goods can weigh in here.
Posted on 4/6/25 at 8:42 am to bigjoe1
So much of what is made in China is made at a coman factory that produces tons of stuff for tons of companies. It’s not an “owned” factory by the label brand.
So, building a factory domestically comes with an incredible investment and challenging capital.
In my experience, these highly automated machines come from Europe with European engineers.
So, building a factory domestically comes with an incredible investment and challenging capital.
In my experience, these highly automated machines come from Europe with European engineers.
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