Insourcing boom

by Propagandhi711 Sun Dec 02, 2012 11:15 am

http://www.theatlantic.com/magazine/archive/2012/12/the-insourcing-boom/309166/?single_page=true#

by Marathadi-Saamiyaar Sun Dec 02, 2012 4:18 pm

Propagandhi711 wrote:http://www.theatlantic.com/magazine/archive/2012/12/the-insourcing-boom/309166/?single_page=true#

Proof that Obama policies and strategies are the right ones (than the job exporting policies of Romney).

There was a news item about 2 years ago how call centers are being opened in Arkansas and Mississippi - jobs that moved back form Phillipines and South America.

This GE move will surely get noticed by others and expect things to drastically improve in 3 to 5 years.

by b_A Sun Dec 02, 2012 9:21 pm

Marathadi-Saamiyaar wrote:
Propagandhi711 wrote:http://www.theatlantic.com/magazine/archive/2012/12/the-insourcing-boom/309166/?single_page=true#

Proof that Obama policies and strategies are the right ones (than the job exporting policies of Romney).

There was a news item about 2 years ago how call centers are being opened in Arkansas and Mississippi - jobs that moved back form Phillipines and South America.

This GE move will surely get noticed by others and expect things to drastically improve in 3 to 5 years.

You missed the point . If you read the whole article, it says manufacturing is coming back . Not the manufacturing jobs. They are getting better designs to reduce the number of workers needed and the parts needed. Read some of the high quality comments below the article.

by b_A Sun Dec 02, 2012 9:49 pm

And one of the factors mentioned is the high cost of transportation from asia because of the high oil prices. Do you want Obama to take credit for that ?
PS: I couldn't edit my post , so I had to create a new reply.

by Marathadi-Saamiyaar Sun Dec 02, 2012 10:18 pm

b_A wrote:
Marathadi-Saamiyaar wrote:
Propagandhi711 wrote:http://www.theatlantic.com/magazine/archive/2012/12/the-insourcing-boom/309166/?single_page=true#

Proof that Obama policies and strategies are the right ones (than the job exporting policies of Romney).

There was a news item about 2 years ago how call centers are being opened in Arkansas and Mississippi - jobs that moved back form Phillipines and South America.

This GE move will surely get noticed by others and expect things to drastically improve in 3 to 5 years.

You missed the point . If you read the whole article, it says manufacturing is coming back . Not the manufacturing jobs. They are getting better designs to reduce the number of workers needed and the parts needed. Read some of the high quality comments below the article.

I did not miss it. the bottom line the JOBS were bought back as it is now profitable by a COMBINATION OF factors. Improvement in process resulting in material and labor costs is part of that. But GE can easily make the same improved design in china using the improved processes (am talking process planning here). The labor costs in China is cheap but - as you said in your next post - other processing costs such as gas, transportation, auxiliary material costs make it costlier in chinese manufacturing.

Also, GE is smart in predicting decreasing energy costs - due to gas production and fracking - in the US over the next 30 ot 50 years while they will likely increase in china and even more in India. Same will be noticed by other corporations and expect more such moves. As we read 3 days ago, US is on the verge of a take off and start the next 50 year prosperity cycle.

by Idéfix Sun Dec 02, 2012 10:28 pm

I think politics has very little to do with this. It is primarily lower energy prices. Natural gas has become dirt-cheap in the US, and it is expected to stay cheap for several years out. That means manufacturers can count on a major chunk of their cost structure being stable -- particularly in areas like chemicals. This is in contrast to rising costs in China and other parts of Asia.

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