US states lure back manufacturing....

[Engineer]

http://www.cnbc.com/id/101795323?__...ahoo&doc=101795323|Why manufacturing jobs ar#.

There are a number of reasons for this shift. Wages in China have been growing roughly 15 percent per year over the past decade, while salaries for manufacturing jobs in the U.S. have risen on average just 2.3 percent over the past 10 years, according to the Labor Department. Factor in higher transportation costs, growing quality-control issues connected with goods made in China and cheaper domestic energy costs, and the case for bringing manufacturing back home begins to add up.

Indeed, a recent survey by The Boston Consulting Group (BCG) found that more than half of the CEOs at U.S.-based manufacturing companies with revenues greater than $1 billion are planning to bring production back to the U.S. from China or are actively considering it. The top three factors cited as the drivers of where goods should be made were labor costs, proximity to customers and product quality. In fact, more than 80 percent of the CEOs cited at least one of these reasons as a key factor. Other reasons included access to skilled labor, transportation costs, supply chain lead time and ease of doing business.

With its low taxes and high-quality trade schools, Alabama's manufacturing sector has been growing. In addition to Airbus, Hyundai, Honda and truck manufacturer Navistar are also expanding manufacturing in the state.

Interesting. I suppose the race to the 'middle' is now getting close especially with high energy prices, resulting in high shipping costs. Also, I thought the sentence about skilled labor was interesting. I'm not sure what they mean by that. Skilled trades or skilled people to work in manufacturing (i.e. production)? I thought the US was dropping rapidly in the skilled labor department. Maybe the CEO's didn't get that memo and think that they will just walk back in, set up shop and get running right out of the gate. Might be a surprise or two for many, especially for those late to the party.

As for Alabama, the low taxes can be achieved my many states if they cut them. However, I would like to see what they are doing with their 'trade schools'. I know that they have opened more manufacturing there as Hyundai and their suppliers have moved into the state. I'm sure that Kia moving to Georgia has helped as well, not to mention a whole host of other automotive factories opening up in the south. Maybe the rest of the nation needs to see what Alabama is doing with trade schools and focus more on that type of education for the people who aren't meant for college.

(I'm sure the usual 'smug' people will be in here to shit on the article and US manufacturing in general....especially for employing the 'human trash' of the US).

 

[Slew Foot]

They still counting assembling hamburgers at McD a manufacturing job?

 

[Engineer]

They still counting assembling hamburgers at McD a manufacturing job?

That was proposed by the Bush administration and never happened after the flogging they took for suggesting it.

 

[Anarchist420]

the u.s. employment rate is so low because there arent that many skilled workers here. and of course, there will be a Gulf War III, there will be another terrorist attack in the u.s. worse than what happened in 2001, and the current real estate and stock market bubble will pop. it will all look worse than the stock market crash of 1929.

on a related note, it sucks ass that reagan ruined japan's manufacturing though as we'll never see products that good or that cheap ever again.

 

[Londo_Jowo]

Maybe the rest of the nation needs to see what Alabama is doing with trade schools and focus more on that type of education for the people who aren't meant for college.

Lone Star College in the Houston area is offering programs that train people to work in refineries/chemical plants and for companies that support these businesses.

http://www.lonestar.edu/cluster-science-technology-engineering-mathematics.htm

Engineering is the branch of science and technology concerned with the design, building, and use of engines, machines and structures. Lone Star College students have several options to learn the engineering skills and knowledge they need to transfer to a four-year university or enter the workforce.

We've recently hired a couple of mechanics that graduated from the 2 year program and they are doing well so far.

 

[Engineer]

Lone Star College in the Houston area is offering programs that train people to work in refineries/chemical plants and for companies that support these businesses.

http://www.lonestar.edu/cluster-science-technology-engineering-mathematics.htm



We've recently hired a couple of mechanics that graduated from the 2 year program and they are doing well so far.

That's great but we read stories every other week that the US doesn't have enough skilled production (or skilled trade workers). Either the story above isn't right or those stories aren't right (or a mixture of both).

 

[Londo_Jowo]

I think it's a combination as some areas are doing better than others however, even with technical programs being offered there's still a shortage of skilled labor in some areas.

 

[glenn1]

Unless it's bottom feeder low-end manufacturing like textiles, sure bring it back to the U.S. Hopefully this time the workers and management learned the lesson that if you're going to manufacture something it had better be top quality and you can't just coast along on reputation or a "made in America" label. Americans aren't going to give U.S. manufacturers a pass and buy crap just because it was made here. That the federal government bailed out Chrysler a couple years ago was one of the worst decisions in recent memory - companies who make shitty products should be allowed to fail and held up as an object lesson to others because they make other American companies look bad.

 

[Engineer]

I think it's a combination as some areas are doing better than others however, even with technical programs being offered there's still a shortage of skilled labor in some areas.

Another question is there a shortage of skilled labor for manufacturing or is there a short of skilled labor for manufacturing at the price that they want to pay. I've seen several factories looking for a Controls Engineer with a BSEE and 2 to 3 years experience with pay between $15 to $25 per hour. There is no way on this earth that they are going to get a BSEE for $15 per hour, even out of school. Not going to happen.

 

[Zebo]

Manufacturing is electricity intensive too. What happens if electricity goes up 100% like some people are saying due to Obama's EPA changes? They also say we wont have capacity now and we will have rolling blackouts. What company want to be here then? I'm calling BS for long term.

 

[Zebo]

Another question is there a shortage of skilled labor for manufacturing or is there a short of skilled labor for manufacturing at the price that they want to pay. I've seen several factories looking for a Controls Engineer with a BSEE and 2 to 3 years experience with pay between $15 to $25 per hour. There is no way on this earth that they are going to get a BSEE for $15 per hour, even out of school. Not going to happen.

lol. Unbelievable. When I graduated in 1992 EEs entry level were 60K (aka $30 an hour) All were hired too. ( I was Materials science but knew them all)

 

[Engineer]

Manufacturing is electricity intensive too. What happens if electricity goes up 100% like some people are saying due to Obama's EPA changes? They also say we wont have capacity now and we will have rolling blackouts. What company want to be here then? I'm calling BS for long term.

I thought that electricity was trickling down because of the massive supplies of natural gas that we've starting pumping out of the ground. Many coal fired plants here in KY are switching to much smaller footprint, cleaner gas fired plants.

Also, what is the state of electricity in China and India (India's grid, IIRC, sucks ass)?

 

[Greenman]

I can't imagine what you're talking about. The US was a leader in quality manufacturing for a long time. I remember when Japanese made goods were considered trash, and rightfully so.
I also don't get where you came up with Regan ruining Japans manufacturing ability.

 

[Engineer]

lol. Unbelievable. When I graduated in 1992 EEs entry level were 60K (aka $30 an hour) All were hired too. ( I was Materials science but knew them all)

Both of these were for Japanese automotive suppliers which really surprised me. I wonder if someone at the job service is mixed up with technicians vs engineers. Even with that, techs. make more than that with any experience.

 

[Zebo]

I thought that electricity was trickling down because of the massive supplies of natural gas that we've starting pumping out of the ground. Many coal fired plants here in KY are switching to much smaller footprint, cleaner gas fired plants.

Also, what is the state of electricity in China and India (India's grid, IIRC, sucks ass)?

Obama is forcing the shut down all 481 coal plants despite fact we only use 1/5th coal China does and have way better emissions already.

This guy seems convincing.
http://video.foxnews.com/v/3648611305001/energy-ceo-warns-electric-rates-will-double/#sp=show-clips

 

[WhipperSnapper]

They still counting assembling hamburgers at McD a manufacturing job?

"Customer would like to take delivery to two double patties on a bun with cheese, pickles, and secret sauce. Please manufacture accordingly."

 

[glenn1]

Another question is there a shortage of skilled labor for manufacturing or is there a short of skilled labor for manufacturing at the price that they want to pay. I've seen several factories looking for a Controls Engineer with a BSEE and 2 to 3 years experience with pay between $15 to $25 per hour. There is no way on this earth that they are going to get a BSEE for $15 per hour, even out of school. Not going to happen.

Happens in all fields, not just manufacturing. IT is pretty notorious for the same thing, to the point of asking for X years experience in a software tool that hasn't existed for that long. I have no idea why companies try to make bottom-fishing salary offers and hope to attract a high-quality workforce.

 

[Fenixgoon]

i've heard that for niche items, the costs were too great to work in china. i hope that more manufacturing comes back, but it's going to be a slow process for supply and demand of labor. we've gutted so much of our skilled labor force that it's going to take decades to rebuild it - assuming the demand is there for it.

 

[dmcowen674]

http://www.cnbc.com/id/101795323?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=101795323|Why%20manufacturing%20jobs%20ar#.

As for Alabama, the low taxes can be achieved my many states if they cut them.

New York has been advertising no taxes for new Corporations for 10 years.

So after 10 years they have to move to Alabama?

http://startup-ny.com/

NEW YORK

IS TAKING CARE OF BUSINESS



There’s a new advantage to doing business in New York. A big one. START-UP NY, Governor Cuomo’s groundbreaking initiative, is transforming communities across the state into tax-free sites for new and expanding businesses. Now, businesses can operate 100% tax-free for 10 years. No income tax, business, corporate, state or local taxes, sales and property taxes, or franchise fees.

 

[pcgeek11]

Another question is there a shortage of skilled labor for manufacturing or is there a short of skilled labor for manufacturing at the price that they want to pay. I've seen several factories looking for a Controls Engineer with a BSEE and 2 to 3 years experience with pay between $15 to $25 per hour. There is no way on this earth that they are going to get a BSEE for $15 per hour, even out of school. Not going to happen.

Our assembly line workers make 15 and up. No way will any Control System Engineer worth anything going to work for that.

 

[pcgeek11]

New York has been advertising no taxes for new Corporations for 10 years.

So after 10 years they have to move to Alabama?

http://startup-ny.com/

NEW YORK

IS TAKING CARE OF BUSINESS



There’s a new advantage to doing business in New York. A big one. START-UP NY, Governor Cuomo’s groundbreaking initiative, is transforming communities across the state into tax-free sites for new and expanding businesses. Now, businesses can operate 100% tax-free for 10 years. No income tax, business, corporate, state or local taxes, sales and property taxes, or franchise fees.

Well after running a business for 10 years in NY they are damn well ready to move to the South Eastern USA.

 

[Jeff7]

the u.s. employment rate is so low because there arent that many skilled workers here.
...

There aren't many "qualified" skilled workers here: When employers say that, they mean that there aren't many skilled workers here who'd be willing to work for $2/day, and therefore they aren't qualified.

But there are plenty of qualified laborers in China.
The US economy is doing well, except that a lot of it is now in China.

I was disappointed to learn that a piece of expensive equipment where I work was made in China, mainly because the company is based in Germany, which I had understood to place great value on domestic manufacturing. I guess the allure of near-slave-labor wages abroad was too much even for them.

Another question is there a shortage of skilled labor for manufacturing or is there a short of skilled labor for manufacturing at the price that they want to pay. I've seen several factories looking for a Controls Engineer with a BSEE and 2 to 3 years experience with pay between $15 to $25 per hour. There is no way on this earth that they are going to get a BSEE for $15 per hour, even out of school. Not going to happen.

Exactly.

"Our wages have to be competitive with a global economy."
Competing with what, China wages? Are we looking to compete with their standard of living as well?

 

[Jimzz]

Manufacturing is electricity intensive too. What happens if electricity goes up 100% like some people are saying due to Obama's EPA changes? They also say we wont have capacity now and we will have rolling blackouts. What company want to be here then? I'm calling BS for long term.

And what people would those be?

 

[IndyColtsFan]

Another question is there a shortage of skilled labor for manufacturing or is there a short of skilled labor for manufacturing at the price that they want to pay. I've seen several factories looking for a Controls Engineer with a BSEE and 2 to 3 years experience with pay between $15 to $25 per hour. There is no way on this earth that they are going to get a BSEE for $15 per hour, even out of school. Not going to happen.

I think that's a case of a company with no vision or foresight trying to take advantage of people during bad economic times. I've never understood that mentality, because the moment the economy turns around or jobs in that field become available, those hires will leave in droves and no one will want to work for them again.

 

[boomerang]

And what people would those be?

That would be Obama himself. He told us that under his system electricity rates would necessarily skyrocket.