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Surging China costs forces some U.S. manufacturing companies back home

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Bryan Buchan Donating Member (253 posts) Send PM | Profile | Ignore Wed Jun-29-11 07:49 AM
Original message
Surging China costs forces some U.S. manufacturing companies back home
A variety of factors are driving the shift, including rising wages in parts of Asia, surging fuel prices and the complexity of transporting goods across the Pacific, prompting some US manufactures to head home.

http://www.msnbc.msn.com/id/43569240/ns/business-us_business/
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Donnachaidh Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-29-11 09:32 AM
Response to Original message
1. I think these companies also fear a consumer backlash that is coming
Most of these companies thought they could have their cake and eat it too -- outsourcing jobs and still expecting the american consumer to support their businesses. And that's an idea pushed by these Nafta proponents.

But folks in this country are PISSED. And pissed enough to do the added research to find companies that have stayed. And are spending the lesser money they have on products made here.

I think a real push to get people to support American made products will bring work back here. Because WE are the consumer base these companies depend on.
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-29-11 10:13 AM
Response to Reply #1
2. When we soap fans were calling sponsors, I called Hershey.
The operator listened politely but absolutely came alive when I said that I'd been reluctant to buy Hershey's products since they closed in Pennsylvania and moved to Mexico..."Where did you hear that???" Insisted that the Pennsylvania factory was still active...

So I'm thinking a lot of outsourcers have been getting negative feedback.
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Igel Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-29-11 04:36 PM
Response to Reply #2
5. The Hershey, Pennsylvania plant is still active.
The Canadian and California plants were shut down and their production transferred to Mexico.

They also have some sort of facility in Lancaster, PA. Some other places in the US, as well.
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-29-11 09:06 PM
Response to Reply #5
7. Thanks.
Correction appreciated.
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stubtoe Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-29-11 11:08 AM
Response to Original message
3. I'll bet it's mostly the fuel prices that's making them leave.
Costs a lot to fuel up cargo ships.
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Uncle Joe Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-29-11 12:20 PM
Response to Original message
4. Kicked and recommended for economic equalization.
Thanks for the thread, Bryan Buchan.
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Mopar151 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-29-11 05:48 PM
Response to Original message
6. The cost of keeping an eye on the Chinese
Is not inconsiderable..... Knockoffs, quality problems, lower quality raw materials, engineers spending half the year in China, problems in Customs... Add it up, throw in a 3 month increase in lead times, and even cheapskate American managers will yearn for the old days of having the factory out back.
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