China Assembly Line: $30/day vs $10 and $8 in Indonesia and Vietnam. Tough act for US workers to follow....Unless we Innovate and Automate! Automation does not cost jobs that weren't there in the first place - or was lost to offshoring.
- Electronics: The most Strategic Industry
- Key 21st Century Technologies
- U.S. Manufacturing Leadership
- U.S. GDP and Trade Balance
- Offshore competition, e.g. China is
Moving Up the Technology Ladder
Many trips, visits and other communications have been made on this issue - to Lehigh Univ., MIT, Univ. Delaware, INEMI.org, NIST, OEMs, Contract Manufacturers and the US Congress. So far, there has been acknowledgment, and even a letter of commendation from the President, but with little significant response except from NIST's manufacturing guru. One new input is from Foxconn, who has announced it will build a $10B display panel factory in Wisconsin, which recently enacted a Right-to-Work law and has suffered the loss of some mfg. jobs in its appliance industry. Foxconn already has small operations in Pennsylvania and funds research at Carnegie Mellon, but employs hundreds of thousands of assembly line workers in China. Foxconn's original success was the iPhone which it still assembles for Apple. Apple management has said the iPhone would not have been possible as a domestic-made product because of labor costs and cultural factors. That apparently also applies to Brazil, where it was said that in a Foxconn factory there - if someone played the Rumba on their radio, all the factory workers with start dancing in the isles. They don't do that in China.
Most domestic OEMs who have outsourced mfg. to China are not anxious to pull up stakes there and return to the US. But this is a complicated issue. To encourage them back required the government actions now taken - as well as a roadmap to lights-out flexible automation, its investment formula for thin-margined subcontractors. Many of these are Taiwanese companies with no presence in the US, but major mfg. campuses in China.
Donald Trump is now President and Mike Pence VP. They made a commitment, through Congress, to reduce taxes on corporations as one step. Also, not well understood via the media filter, is that a tax on corporations is often a tax on individuals through higher prices. We will also incentivize companies with to repatriate trillions of dollars parked off-shore, to re-invest in North American manufacturing. This is now happening at Apple, Microsoft, Oracle and others.
Without protectionist policies, and nurturing international competitiveness, US and yes, Canadian companies - plus foreign companies now wishing to manufacture here - should be attracted to North America for both domestic consumption and export. The US and Canada can further cement a formidable global competitor in both private sectors and in their mutual national security. Much more needs to be done. Mexico will be part of this, so long as they stop massive emigration to the US, protect their southern borders from the Drug Cartels and adopt a better playing field with North American industry. Lets face it: We already manufacture in MX, with its advantage being 50% lower direct labor costs. This helps us to be competitive and is a fact of life.
Latest Data: There are over 20 million people working for Government in the US today. Less than 13 million work in manufacturing. 7 million manufacturing jobs were lost since manufacturing's peak in the 1990's, but over 2 million have been regained since the last trough in Jan. 2010. The current administration, as promised, has done something about this, with its bully pulpit, less regulation and the recent tax cuts The Economy is respondng, but in electronics, we are still outsourcing. The latest victim: millions of Servers that make up Cloud Data Centers hum.
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in the Making?
Note: This site is not intended to echo current political controversies on domestic manufacturing - although the subject does indicate something was seriously amiss. The government aspect of this issue needs to play out with the Tax Relief on Foreign Earnings of American Companies, with the new 20% corp. tax, from 35% in 2017, and with programs designed to increase U.S. competitiveness in a global economy. But there are problems to overcome:
1. Many OEMs no longer manufacture their own products (outsource) and have few or no facilities in the US to mfr.
2. Contract manufacturers who do high volume assembly have mostly relocated that mfg. offshore (Read China).
3. This subcontract supply chain works on very thin margins with little or no R&D
4. Executive pay and bonuses are dependent on the bottom line. This encourages offshoring to reduce costs.
5. Even Universities are reticent to a domestic mfg. thrust, since many of their tech students are full-freight Asian.
6. The FBI director warned this month about Industrial Espionage in Industry....and Academia
- Badly Needed are OEM Commitments
- Technology Innovation in the US
- Manufacturing Automation & Robotics
- Contract Mfrs Need to Step Up
- Key Industry Players and
- Suppliers showing it Can Be Done:
- Semiconductors, Pharmaceuticals, Food
Manufacturing, Autos, Electrical,
This site is dedicated to Ideas, Programs and People, including corporate leaders, that will assist the U.S. in strengthening its domestic footprint for high volume electronic manufacturing, and in other affected industries.....particularly the complex supply chains that are the lifeblood of manufacturing.
circuitnet.com connectorsupplier.com adandp.media (auto) AIMPhotonics.com
electronicdesign.com chinadaily.com.cn macworld.com photonicsmanufacturing.org
displaydaily.com spectrum.ieee.org pcworld.com assemblymag.com
ecn.mag.com cnet.com ibmsystemsmag.com circuitsassembly.com
technologyreview.com pcdandf.com (PCBs) electronicsindustry.org eetimes.com
evertiq.com maepennet.com (Mil/Aero) pcb.iconnect007.com
Note this latest: https://www.weiner-intl.com/weiner-s-world/