USA, the new low cost producer

[jimmyle]

I work for a company that produces sealing products for many industries including industrial, analytical, aerospace.. We have a plant in Europe and just opened a plant in Shanghai 2 years ago. The plant in Shanghai was meant to be the site for high volume products.

It didn’t turn out that way. Even after lots of training and enormous cost of setting up the equipment in China. The cost of producing in products in Shanghai still higher than in the US. Partly because of the quality problems and lack of experienced personel. So management enthusiasm has waned and it seems like we will never be able to make China the low cost center. I think because our company product is not very high volume and requires Engineering Knowledge that is very difficult to tranfer and we because of selfish reason do not wholeheartly trained the people in China.

Because of the decline of value of the dollar, our plant in Europe is now asking our plant in the US to produce products and ship them there. It costs our company 40% cheaper to make products here than in Europe. They are sending loads of orders here and our production people are working 6 days a week now.

My point is that the dollar might fall some more but it will stop at some point. As China and the world become richer the pace of oursourcing will slow down significantly. We probably will become poorer and consume less but it won’t be as bad as some have predicted.

[Coronita]

Actually, this is quite common. I've been saying this for some time. A lot of the overreaction to outsourcing is just that overreaction..

 

I was talking to an Indian CEO of a Pharma company over a weekend..He was opening a major site in the U.S. I asked him why he wasn't doing this in India. His response was that the training and tools in India was lacking and that it was difficult to go though the certification if the facility was outside the U.S.

Second, a few checks with IT outsourcing projects were that while it works for routine maintanence or when you code to a requirements with a T, it doesn't work with esoteric projects or requirements, or projects requiring just-in-time design. Also with the falling dollar, labor isn't really that expensive relative to overseas.

[Coronita]

Actually, this is quite common. I've been saying this for some time. A lot of the overreaction to outsourcing is just that overreaction..

 

I was talking to an Indian CEO of a Pharma company over a weekend..He was opening a major site in the U.S. I asked him why he wasn't doing this in India. His response was that the training and tools in India was lacking and that it was difficult to go though the certification if the facility was outside the U.S.

Second, a few checks with IT outsourcing projects were that while it works for routine maintanence or when you code to a requirements with a T, it doesn't work with esoteric projects or requirements, or projects requiring just-in-time design. Also with the falling dollar, labor isn't really that expensive relative to overseas.

[Coronita]

Actually, this is quite common. I've been saying this for some time. A lot of the overreaction to outsourcing is just that overreaction..

 

I was talking to an Indian CEO of a Pharma company over a weekend..He was opening a major site in the U.S. I asked him why he wasn't doing this in India. His response was that the training and tools in India was lacking and that it was difficult to go though the certification if the facility was outside the U.S.

Second, a few checks with IT outsourcing projects were that while it works for routine maintanence or when you code to a requirements with a T, it doesn't work with esoteric projects or requirements, or projects requiring just-in-time design. Also with the falling dollar, labor isn't really that expensive relative to overseas.

[Coronita]

Actually, this is quite common. I've been saying this for some time. A lot of the overreaction to outsourcing is just that overreaction..

 

I was talking to an Indian CEO of a Pharma company over a weekend..He was opening a major site in the U.S. I asked him why he wasn't doing this in India. His response was that the training and tools in India was lacking and that it was difficult to go though the certification if the facility was outside the U.S.

Second, a few checks with IT outsourcing projects were that while it works for routine maintanence or when you code to a requirements with a T, it doesn't work with esoteric projects or requirements, or projects requiring just-in-time design. Also with the falling dollar, labor isn't really that expensive relative to overseas.

[Coronita]

Actually, this is quite common. I've been saying this for some time. A lot of the overreaction to outsourcing is just that overreaction..

 

I was talking to an Indian CEO of a Pharma company over a weekend..He was opening a major site in the U.S. I asked him why he wasn't doing this in India. His response was that the training and tools in India was lacking and that it was difficult to go though the certification if the facility was outside the U.S.

Second, a few checks with IT outsourcing projects were that while it works for routine maintanence or when you code to a requirements with a T, it doesn't work with esoteric projects or requirements, or projects requiring just-in-time design. Also with the falling dollar, labor isn't really that expensive relative to overseas.

[NeetaT]

I wish Porsche parts were made in the U.S.

[NeetaT]

I wish Porsche parts were made in the U.S.

[NeetaT]

I wish Porsche parts were made in the U.S.

[NeetaT]

I wish Porsche parts were made in the U.S.

[NeetaT]

I wish Porsche parts were made in the U.S.

[barnaby33]

I work at a RIA (Rich Internet Application) shop, we are the low cost producer! We ain’t cheap either. We’re opening offices in Europe and Taiwan and Oz. For somewhat high value products like software, a weaker dollar will help bring work back to the US. Overall its going to suck, but for now its helping bring in the business.

I say its going to suck because we are still the consumer of last resort and when we go into recession so will everyone else. Decoupling is a myth.

Josh

[barnaby33]

I work at a RIA (Rich Internet Application) shop, we are the low cost producer! We ain’t cheap either. We’re opening offices in Europe and Taiwan and Oz. For somewhat high value products like software, a weaker dollar will help bring work back to the US. Overall its going to suck, but for now its helping bring in the business.

I say its going to suck because we are still the consumer of last resort and when we go into recession so will everyone else. Decoupling is a myth.

Josh

[barnaby33]

I work at a RIA (Rich Internet Application) shop, we are the low cost producer! We ain’t cheap either. We’re opening offices in Europe and Taiwan and Oz. For somewhat high value products like software, a weaker dollar will help bring work back to the US. Overall its going to suck, but for now its helping bring in the business.

I say its going to suck because we are still the consumer of last resort and when we go into recession so will everyone else. Decoupling is a myth.

Josh

[barnaby33]

I work at a RIA (Rich Internet Application) shop, we are the low cost producer! We ain’t cheap either. We’re opening offices in Europe and Taiwan and Oz. For somewhat high value products like software, a weaker dollar will help bring work back to the US. Overall its going to suck, but for now its helping bring in the business.

I say its going to suck because we are still the consumer of last resort and when we go into recession so will everyone else. Decoupling is a myth.

Josh

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