U.S. Companies Aren't Going to Bring Asian Factories Back Home - Bloomberg

U.S. Companies Aren't Going to Bring Asian Factories Back Home - Bloomberg



... the monthly salary of a factory worker in India is $265, in Vietnam $227 and in Bangladesh a mere $109 -- pennies compared to wages in the U.S. That’s one reason why only a small amount of apparel production has returned to American shores. Even though U.S. production of clothing surged by 67% between 2009 and 2017, it still accounts for only 3% of the market, according to the American Apparel & Footwear Association.



...American factories are already facing severe labor shortages; the latest data from the U.S. Bureau of Labor Statistics showed more than 500,000 unfilled job openings in the manufacturing sector. A dearth of available workers has bedeviled a Trump-touted plan by Taiwan’s Foxconn to build an assembly plant in Wisconsin. The problem is only likely to get worse. 



... some suppliers possess technology or technical skills that are difficult to recreate elsewhere. For instance, in the business of dinnerware -- plates, mugs and so on -- Chinese manufacturers remain unrivaled in their ability to produce the massive quantities necessary to fill shelves at Wal-Marts and Targets at an acceptable price and quality. High-tech manufacturers such as Taiwan’s Largan Precision Co., which makes camera lenses, or Japan’s Murata Manufacturing Co., a specialist in foldable circuits, are so skilled at what they do that they can’t be easily replaced.



...companies will continue to produce in different countries to serve local markets.