Garment Factor Coming to Town

[baileyuph]

Hard to believe but that is what I read.  The factory is going to do the work that has been sewn in some Asian country but there workers are union and want more pay.  Hard to believe huh?  The shipping cost and now the union cost increase is bringing the work back here.  If I remember, it is 1500 jobs!  Can you believe it!  They will be relatively low pay, but we need jobs for some of these unemployed people, if they will work at all.

I wonder if this is the start of new trend?  I amagine shipping cost is increasing fairly significantly also.

Standby, we shall see as they say.

Doyle

[byhammerandhand]

I'd say it's happening more and more.  Shipping cost, time delays, quality issues, parts availability, increasing labor costs probably all contribute to on-shoring.

Remember when Ross Perot talked about that giant (job) sucking sound with stuff going to Mexico?   Mexico got underbid by China and China will someday get underbid by someone else.

Stanley Furniture shuttered their plant here only to have some quality problems out of China and ended up reversing that decision.

I heard this morning that Honda is now a net exporter of cars.  There's a big plant in central Ohio and another in Central Indiana.  Not just assembling imported parts, but USA designs and made parts.

[sofadoc]

Here's the rub.

The factory will probably pay minimum wage.

You can get Asians to work hard for minimum wage.

Can you get Americans to work hard for minimum wage?

My experience says "NO!".

[MinUph]

I think anything that brings back work to the US is a good thing. We can make clothing better than anyone and we will have to learn to deal with the global economy or lose it all. Hats off to these companies bringing the work back here. Made in America will once again be strong. As for the minimum wage thing, maybe or maybe not. That will depend on the companies. Nothing personal to any union workers here or abroad but this is one of the big reasons the work was sent overseas in the first place. Union wage got to be a bit out of hand. It had its uses way back when but got too greedy. So did the American worker. Where else could a high school dropout make 17-25 an hour for unskilled work? Seems a bit out of line. I know the union people will probably pounce on this one but thats my opinion. Seen it lived through it.

[Mojo]

There is a benefit to higher fuel prices...........increased shipping costs. There are several large manufacturers who have brought their manufacturing back to the USA. Recently a big appliance maker brought back some of their manufacturing stating transportation costs as well as wanting manufacturing and engineering closer to one another.

This is one area that China lacks expertise in - engineering. They lack good qualified professors for their engineering schools. I believe also from everything I have read that China is concentrating on domestic use/sales for many of its products and their economic philosophy is changing which is growth from within.

We only need to look to Japan in order to see where China is headed. A new world leader in manufacturing will emerge someday to over take China just like what happened to Japan. Look to a large population center and poor living conditions to find the next one. India ??

I see more products now coming out of Vietnam as well. They are even exporting food, namely farm raised fish called Swai ( found at Walmart ). Pretty amazing since we turned that country into a toxic waste dump back in the 60's. :(

Chris

[bobbin]

Worth considering that clothing is all about "fashion".  And "fashion" is very time sensitive.  Working with off shore manufacturing facilities requires lead times of at least a year to get the fabrics, threads, and patterns all production ready.  And if there is a glitch along the way and things are delayed getting to market and the "fashion" that was once "hot" is now passé, all the work involved is meaningless. 

I never belonged to the union.  Too much money for "dues".  I'm with Paul, at one time unions were important (Triangle Shirtwaist factory, those dreadful textile mills in "Norma Rae", etc.), but now? I'm not so sure.  In my experience most piece rates in garment manufacturing facilities are set so almost any unskilled worker can make minimum wage with little effort.  Those who're motivated and pay attention to time and motion can make more, sometimes considerably more.  Working piece rate was great for me.  It was the first time in my life my motivation and attention to detail was really rewarded.  I worked my ass off but I also make good money!