In China, outsourcing is no longer cheap
As China makes big moves to improve its environmental and labor conditions, U.S. companies that manufacture there face soaring costs. Have your say about the changes.
From John – Fairfax, VA I have just purchased another product (small remote controlled toy) manufactured in China. Much to my disapointment, it failed after two hours of use. Excellent engineering, poor quality and cheap materials.
But this is not my only disapointing experience with Chinese manufactured goods. I have bought and thrown-out: one outdoor grill pan where the ceramic coating rusted after several uses, numerous patio chair covers that either left marks on my furniture or fell apart at the seams after one month; a grill that started to warp after overheating through normal use; an outdoor electrical extension cord that had a warning about high lead content, warning the consumer to wash hands after using. And I could go on.
The point I am making is yes, relatively speaking the products are cheap in price, but as my in-law would say,"cheap is expensive". You just end up thowing it out after little use, in some cases because of safety. At least that has been my experience. Now I am very picky on what I buy, and I buy alot less. And if I see the 'Made in China' label I try to walk away.
I would rather have the junk made here so at least the money is staying in country, and someone is more likely to be held acountable for poor workmanship and quality. I think there can be a good balance by having some manufacturing overseas, and some in country: a checks andd balances if you will on manufacturing and quality.
As it stands now manufactures (American and foreign) are sending us a lot of junk. Save your money instead.
From Ben, Minneapolis, MN We have China to thank for the lower prices that we pay for many goods and services due to cheaper sources of labor and raw materials. For the lower income Americans this is definitely a blessing. In regards to child labor, does anyone remember as late as the 1950's? My parents were working on the farm as early as when they were 6 years old. That is what it took to survive in those days, and that is what it can take in many third world countries still today. To demand the children should work at the expense of them going hungry is not very smart.
From emilymaltby So-called "American" companies, run by "Americans" who had all the advantages of being in the United States, including a good market in the United States, helped contribute to the downturn in the United States economy, reaping the profit for themselves. Now it's not so cheap for them to destroy the American worker to line their own pockets as the pool of cheap overseas labor vanishes.
I have no sympathy for these vultures who had no guilt at destroying the United States to line their own pockets. It's time for both small business and big business to realize that if you actively encourage the economic destruction of your own markets, you are committing economic suicide.
From emilymaltby So people like Melanie Corpstein who actually brags on her home site that she has made over 1 million dollars, are mad that they can not use slave labor anymore to become rich? This is a bad thing how?????? She is actually complaining that little Chinese kids aren’t creating her product anymore for slave wages. Isn’t she a mother herself? She is as stated on her website. Not only should she lose her business but someone should force her children to work under slave conditions. Let’s see how her story changes. RIDICULOUS!
From john San Jose The sky is not falling after all. Remember all the fear and loathing that came with the Japanese car invasion? Now that Japan has risen as a manufacturing power house, we have not been driven off to the sea by their "cheap immitation goods". All this time, we have full to near full employment with better paying jobs. The GDP of our country grew faster than Japan and Europe. It looks like the same story is replaying in China. Instead of complaining about all that was lost, we should be looking at what we can gain from this situation.
From Robert, Taylorsville, Ut It's good news and bad news. The good news it means jobs may return to america. The bad news, the illegal aliens will be expected to fill these jobs with tax free income and tax exempt employers. This was foreseable as soon as many of their manufacturing methods began to surface with tainted and unsafe products. Still for the US to put so much of our manufacturing in the hands of a communist country that at any time pull the plug on us is a big mistake. America's jobs are not jobs that can support an economy and be self sufficient. Technical jobs come and go and soon they won't exist in america either. A country with no manufacturing or exportable goods is a country in trouble. A global economy is not so great for america, it only benefits the american business bottom line. A global economy is dangerous for homeland security and costly for the taxpayers. This so called global economy system has been erected by american business to supply the american consumers who's income has been slashed and stagnated to benefit the american businesses. There really hasn't been a benefit for the american people to outsource that hasn't cost us dearly in taxes and lost jobs. American income is stagnenet as inflation takes its toll and government is praying that the american workers do not demand higher wages and income to offset inflation. The global economy is a disaster in the making soon to implode and america and the american people will be the losers. A new 3rd world nation with corruption and wars an everday part of life. The best thing for america is the backfire economics developing in China as well as other nations. The american people don't seem to understand that much of our inflation is due to the devaluation of the dollar, not rising cost of raw materials. It weakens our economy and is having devastating affects on our ability to live. This is what a 3rd world nation deals with over decades of corruption in government and greed. Many americans feel safe and satisfied as long as they keep getting their paultry income after taxes. But those feeling like thay are living in a safety net better get ready for the bust and breaking up of america. We are already divided by nationality, citizenship, gender, age, race, sexual preference, education and income, just wating for the right time to be beaten. Even our military are divided and scattered around the world with no one on the home front to defend america.
From Don of Seattle WA The time has obviously come for domestic production of goods. We need to be making our toys and clothing at home, not in some slave shop behind the barbered wire walls of China. Bring the jobs home, before no one can afford to purchase anything
From Ernest Thisnis GREAT NEWS for Americans and US workers over time. Finally, we are seeing a world thats not just "flat" for employees, but employers and manufacturers as well. Sorry, US businesses, you can t hav your cake and eat it to.
Fact is, that despite offshoring of jobs, the world is slowly leveling out. I mean, as we see 70% attrition and higher salaries in India in IT now, so too teh cost of doing business in China will go up. What this means is US companies will finally have to compete not only for employees, talent, resources and workers globally, but now comepete against Chinese and Indian companies for the same services and products.
As the Chinese learn to do IT services, like Nuesoft, or like India and Tata, thos companeis will eventually land on foreign soil in the United States and bid for talent in the US. Sure, our costs are high now but not for long as the global economy levels things out, like is happening with China. Corproations have it easy now but I suspect, as costs go up in China and India and manufacturing costs increase, the viability of US workers in not only IT but across the board will be very very good over time. Sure, there is Africa nd Vietnam, but look at some of those economies….they also see inflation rates and higher operating costs. I know people from Vietnam who tell me so.
In the end, what will matter will be talent, and no matter where that is, in the US or China, if Im competing for labor and talent and have to compete agfainst foreigners, guess who wins. The US laborer….not the US companies. I predict soon you will see foreign companies come here and buy up US workers, because its more competitive to do that here on our soil that overseas. When that happens, will be sweet revenge for US workers who now can help China increase its revenue, while US companies undervaled talent in thier own back yard for cheap, low quality labor pools.
From Dave L, Fort Collins, CO Between rising labor costs and shipping (a recent article stated that shipping costs for a container from China had tripled since 2002, and are exopected to double again by 2010), more & more manufacturers will move production back over here.
From Ron W., Summerville, SC This is great news! American manufacturers have been all too happy to take advantage of cheap Chinese labor at the expense of American workers. Lax regulations and standards in China have given them an unfair advantage in the market place. It's about time China tries to join the rest of the 1st world and tightens up their standards.
Too bad the big corporate CEO's may have to trim some of thier fat bonuses and hire back some American workers in the process. I feel so sorry for them :-(
From Neal Kienholz, Vernon, CT This should be expected. As Chinese manufacturers grow, they will experience the same economics the Americans have since we became a major player in this arena. They want to emulate the U. S. and its' wealth. Along with change come related costs.
From Sam, Charlotte, NC What we are seeing is nothing new. Remember when everything seemed to be made in Japan? And we thought it was crap? Then it was Korea, Taiwan, Mexico, India, China, and a host of other countries. What happens is that labor shortages and competition drive up wages as companies try to lure workers to their factory. There are also other factors in play as well. I'm still trying to figure out how you keep moving your production from country to country, train a new work force each time, and still maintain quality. I guess I answered my own question regarding quality…you don't maintain it which explains the likes of what comes out of China. You get what you pay for.
From Jason Stoons, Austin TX The only way to turn China into a democratic country is to educate the people – first to read and write.
Then with capitalism going the Chinese people see that they should have a claim against those who exploit them.
That is what is happening in China, the challenge of opportunity and responsibility.
Sure some American companies saw a way to save money by outsourcing to China, but it was obvious to many of us the costs would eventually rise greatly as the Chinese people learned to make demands on their government for fairness in the capitalistic world, demands that pollution be reduced, that employers follow already-existing employment laws, and laws to follow.
None of the businesses/people profiled in this article have any reason to complain about costs going up. It was bound to happen. The problem for American manufacturers is the cost of manufacturing in China is still far lower than the cost in USA, so the jobs won't be returning to USA.
Makes for interesting reading.
From Howard L. Seattle Washington Its quite clear, many poster do not fully understand global economics.
American wages are still the highest in the world. Much higher than in China. However, those higher wages do come at a price. To earn those good wages, they are typically in jobs that are more stressful, such as software development, project management, engineering, medicine, financials, etc. High paying manufacturing wages are becoming less and less. Manufacturing jobs (i.e., physical labor in a factory) are still in the US, but because of globalization, they are far from the highest paying jobs.
The American labor force must continue retrain themselves in math and science and business if they are to continue to maintain their wages. If not, Americans may get their wish one day, and the textile and toy factories will come back to America. Companies like Nike will move their factories back to America…….and move their R&D centers to China.
From Bill Parks Moscow Idaho Warren Buffett provided a solution in an October, 2003 Fortune. The simple answer provide an export certificate to all exporters for every dollar of goods exported. Importers would have to purchase and export certificate to match their imports. Provides open market solution for a difficult problem. Government could adjust the amount of goods that could be imported for each export dollar certificate. This would allow the US to remove all tariffs and depend on market relationships to determine both products to be exported and those that could be imported. US manufacturing would become more competitive by selling export certificates. Imports would be limited by how much the importer is willing to pay to import. Excellent market based solution.
Might start with an approximate ratio giving two dollars of imports for every dollar of exports and then ratchet the ratio down.
From Marcus. Vallejo, CA What American manufacturers really want is Slavery pure and simple. They want to operate unencumbered by child labor laws, environmental standards, U.N. treaties, taxes or any responsibility whatsoever.
The problem with Capitalism is that at its heart it is a brutal and cold system that places humanity into a mathematical calculation. Someone has to be on the bottom for it to work. It was not that long ago when "the bottom" wasn't quite so far down. Today, corruption and greed has forced us into a situation where new forms of slavery are required so that we can shop at "BigBox USA".
When monthly salaries of $132 is unsustainable and a $56 salary is what is needed…Well, it just goes to show exactly how far the American standard of living needs to fall to make us competitive in the world market once again.
From Shane, Tampa FL Its pretty simple – wages have historically been lower in China – we pay them to make stuff for us – we get those products at a cheaperprice tahn if they were made here. We benefit from cheaper prices for foreign made goods. They benefit from employment opportunities. People can say they have sweatshops, but that is coming from an American mindset. Child labor is one thing, but for us to complain that a worker in China makes $10 a day is ludicrous. Their costs are totally different from ours.
From Mike Carlyle Il Gee, more of Republicans chickens coming home to roost. Let's outsource american jobs. Make it real easy and let these companies cheat on their taxes after all we're all in it for the money. Just send your money in to the RNC. Oh now "we" can't afford to pay the chinese workers because people in the US don't have jobs or money. Too bad for you!!!
From Tim, Red Hill Pa. I took my daughter shopping the other day at the mall and decided to play a game while she shopped. I tried to find a "Made in the USA" tag on the clothes. After 8-10 stores and 13 countries later not 1 Made In USA tag. This disgusts me, are we too stupid to make a shirt in America , and please, don't even give me the same old tired line that it's the "unions fault". The same idiots that say that don't seem to have a problem with the CEOs of these companies making billions in profits while the American workforce suffers. Ford, GM, and Chrysler aren't suffering now because of unions, they're suffering because they went cheap in the 70's and 80's with their parts and design. Name me 1 GM or Ford car from the mid to late 70's you would truly say was greatly designed. There aren't any and this is why they suffer. They still haven't learned their lesson today. When all the Japanese companies were turning to hybrids, what do the American car companies do…pump out more SUVs, but I guess that's the unions fault too.
But don't feel too bad for the Rich CEOs and filthy rich stockholders, I'm sure they'll find some dirt poor country in Africa they can exploit next!!! Meanwhile the idiot Republicans will point to the unemployment rate and say "look how good were doing" while conveniently forgetting to mention the fact that all the people in America who have lost their honest paying jobs to outsourcing have had to replace them with crappy, lower paying jobs at places like Wal-Mart making 8-10 dollars an hour with little to no insurance benefits. There is going to come a time in this country when we will HAVE to revolt to finally get it through to the Waltons of this world that we are fed up, I pray for that day!!!!!!!
From easy rider, greeneville, tn I don't feel the slightest bit of sympathy for these poor folks that are outsourcing American jobs, but yet expect to market their goods in America.
Besides, last time I heard, wasn't China a COMMUNIST country? That we are tripping all over our feet to send our money to support the Communists?
My opinion is that any company producing any goods in China is a Communist company. Plain and simple.
Buy American and Boycott China.
From prashant, salem, ma Im glad that china is getting better at environmental and labor laws.
It shows that companies cant exploit people and regions in order to make a profit.
That said, i would rather pay for something a little more than something cheaper and the product falls apart quickly.
I have already had many products made in china and bought through walmart, that fell apart fairly quickly.
From Greg PP, NJ. Ask Melanie Corpstein what she plans to do when she runs out of countries with cheap labor? I am glad that China is becoming more costly for manufactures she and others like her claim to be smart business owners but in reality they are stupid business owners that blindly follow one another down a black hole instead of being creative business leaders. She and other like her are liars when they say they want to be 100% American just look at her business it is no different then anyone else's business. These are not business owners whose business expertise I would put any value in.
From Tony, Boston MA The trade gap with China has been cavernous for years, so I say it's about time that we pull outsourcing out of there to level the playing field. There's a reason that China can afford to support our debt, we're giving them that borrowed money hand over fist for their cheap products.
From American Worker,Bluffton, SC I fell like the cat that ate the canary. After watching globalization STEAL American jobs and listen to the politicians justify the theft, it feels good to see the tides start to turn on the traitors. I just want to wallow in it a while. Thanks for the good news. I hope the trend continues.
From Tina Tafoya Actually, I am glad to hear Chinese products will cost more. Maybe we will reach the point where it costs about the same to make it here in the US and we can tell them to take a flying leap. Wont it be great to be able to shop without worrying about the environment, slave labor, or out pets or children being poisoned?
From UUS, Illinois If these business owners ever bring production back to the US they may need to be re-educated. They have been so used to abusing employees in sweatshop conditions that they may not be fit to be a part of our society.
From Christian I am shocked at some of these comments.
In the eyes of Christ, is a person in China worth less than a person in America?
Do people not realize that 20 years ago, most Chinese people lived without electricity, heat, running water, adequate nutrition, or hope for a better future.
Sourcing products from China has spread freedom, opportunity, and the American Dream to hundreds of millions of people in China. Now parents are able to provide good meals for their children, able to keep them warm in the winter, can afford to send them to college, and are looking forward to a brighter future.
The cost and disruption to many in the US has been great, but somehow the unemployment rate here is still just 5.7%.
We should all be share in the joy and pride of the industrious and hard-working people of China, who, in just one generation, have had amazing success in climbing out of poverty. All they needed was for someone to give them the opportunity.
Now we see that wages in urbanized areas of China are rising up to 18% per year, which means that opportunity has spread to all Chinese people willing to work in factories. At the same time, employers have spread opportunity to other Asian countries such as South Korea and Vietnam, and wages there are increasing 25-30% annually.
A similar story is happening in India, where wages have risen so high that there's no longer a cost savings to outsource IT jobs there.
Given such a rapid rise out of poverty for the two most populous nations on the planet, I wonder if poverty will be entirely eradicated in our lifetime.
Jesus would be so happy that we shared the American Dream with the rest of the world, and in so doing, lifted the world out of poverty and hunger.
From Gary Bricken, San Antonio, Texas Interesting article but kind of one sided. How sorry am I to feel for people who want Americans to buy their products but don't want to employ them to make them? Every American should think twice about buying anything from China: all we have accomplished in the long run is to take the savings we have accrued in past years and spend it in rising oil prices today. And we threw millions of Americans out of work in the process. Good plan. Can't wait to see what's next.
From Katie Hench, Chicago, IL Is the higher cost of outsourcing to China going to help small businesses that do not outsource?
From Jason I am glad this has come to light, but not from the perspective that it was portrayed. I guess since it is in the money/business section of CNN that this is bad news, but I think it is great that the piper has come to call for all of the 'quasi – entrepreneur types" who dare call themselves businesspeople when the only reason they could even profit was because they manipulated China's previous horrendous human rights policies that basically allowed slave and child labor. "Outsourcing to China" has been an unethical practice that has went unchecked for a couple of decades. Unfortunately, it is the Chinese putting it to an end, rather than us policing our own moral and ethical practices.
From Eric Ellis Chicago, IL Well, I think you are all correct. This is a complicated situation. Some of it is is driven by greed in corporate America, some of it is driven by American consumers thinking only of the cheapest price, some of it is driven by the Chinese government's drive to grow at any expense, and our own government's poor policy. But it is also driven by the fact that American workers got pretty greedy. Nobody deserves to make $70,000 a year WITH a lavish benefits package just for working an assembly line, and that is exactly what organizations like the UAW came to expect in the 1970's. Some companies also do it not because of greed, but bacause they are forced to by competitors who have already done it. This was the case of an Uncle of mine who runs a manufacturing company. I am definitely not a supporter of China, and try my best not to buy goods sourced from there. I find that there are options. It also fact that manufacturers have moved business back to the US. Just do a Google search and you will find articles where guys say, "we got to the point where we didn't know why we were doing it anymore." Many people move according to the herd. Any company that moves manufacturing to China now will find themselves in a situation similar to stock market investors who bought Internet and technology stocks back in 1999-2000.
From Not feeling it in Olean, NY When the jobs were shipped out of the U.S. for higher profits, the company management teams cheered. Now that the profits are dropping from higher outsourced costs and the U.S. consumer can't afford to buy anything (because his job left the country), we should feel bad for these companies?
Maybe they need a government bailout.
From John. Ft lauderdale Fl There goes our new middle class Chinese Buyers for US made goods!
From John Ft. Lauderdal Florida I hope the Democrats are happy.
From Glenn J, Sanger, TX Regarding the four article profiles: Years of huge profits, slave labor, low taxes and no domestic overhead? Cry me a river. You are lucky you had it so good for so long. You should have used the boom to develop higher quality products not dependant on cheap labor to turn your profits.
From Eric,Zuerich,Switzerland I want to know why CNN, and other, reporters are able to interview Chinese peasants on the streets. Shouldn't the peasants be at their station in the factory? Don't they have a daughter who can stand on a soapbox next to her father and operate a machine too? Why should I pay higher prices for their laziness? They are causing water pollution because I would have to wash my shirts instead of just getting a new one because the Chinese keep taking time off to talk to reporters.
From Eric,Zuerich,Switzerland China, like India and Russia, are going down the same path. If you live in a city then you have a chance of a job and perhaps improved living standards. For those who live on the land or who aren't employed in one of the "select" industries they aren't wanted and can go hang.
From Robert, Los Angeles, CA I agree with Sean from MA, consumers are so quick to judge and yet they are hyprocrites. They want to hate China because importing has hurt US Business, however when they make a purchase either online or at retail centers consumers want the best price…WAKE THE HECK UP! China is making some great product(s) today. In fact some of the product we import is then re-packaged and sewn in the good old USA..and we employ over 150 people which work in our factory in Los Angeles. Try starting your own business today that involves "inventory" and see how far you get with full vertical domestic production. I give you six months until you book your first plane ticket to China. Volume for vanity, profit for sanity. "Eat or be Eaten" It comes down to being profitable and giving the consumer a great product at a great price.
From Dave,Ames,iowa One more comment; after reading all the comments I feel it is NOT 'Our' fault demanding cheap merchandise.
Over the last 30 years as corporations successfully stagnated wages We have no choice.(Read that as Thank You Ronnie!!!!) I 'like' McCain, he'd probably be a helluva guy to have a beer with, but he touts the trickle down theory and all it did on Reagan's watch was make the rich richer.
From Dave, Ames,Iowa I work in a food production facility.
I make roughly two dollars an hour more than my Dad did 20 years ago. Honorable work doesn't exist in the production world any more. China's rise in the global market will only ensure a drone work force, barely making ends meet all the while the (major)shareholders and CEOs will not miss a penny.
From JL, Toms River, NJ This could have easily been anticipated. It just could not be easily determined as to timimg. We saw the same thing happen with goods manufactured in Japan and, to some extent, in Korea. I'll bet some products now cost more to make in China than they wouold cost in the USA, BUT we probably no longer have the infrastructure to make these products today.
From Steve, Portland, OR Let us cheer on this effort, in China, India, and everywhere else. Better living and working conditions will level the playing field, particularly if our next government doesn't try to prop up the US dollar. Perhaps then some industry may come back to the US. It should if fuel prices continue upward.
From Stephen, Boulder, CO Wal-Mart = Cheap Chinese Crap built by slave labor and no enviromental controls.
Time for Americans stop buying all the cheap crap and put Wal-Mart and China out of business. Bring back American products that are sold in stores that support American workers!
From Ron – Portland, OR As a manager in the Freight Transportation and Supply Chain Logistics industry, I am surprized by the number of manufacturing clients who have recently expressed bitter disappointment over rising cost of goods imported from China. The expected economic benefits of out-sourcing have not materialized for many companies.
Escalation in the cost of actual manufactured goods, however, is only one component. Couple that with the weakened US Dollar and dramatic increases in freight transportation costs (mainly fuel), and importers of Chinese-made goods get the triple-whammy.
From Jane, Arlington Heights, IL Totally agree with Herman from TN. The US companies that decided to hurt the American labor force deserve to be pinched now. Having tried to live without "Made in China" products, without success I might add only fueled my anger. What ever happened to Made in AMERICA??? There used to be pride in that statement. Now items are hard to find…even my husband's western style shirts which come from every other country EXCEPT the good old USA. Shame on the manufacturers and clothing companies.
From Sage of Harsh Truth, San Ramon, CA History has shown us again and again that sentiment and patriotism don't win in the long run, basic economic principles will. It is not the wrongdoing of "business execs" (try to be one and you will see how hard it is); they just try to please the consumers and cover their bottom line. It is not the wrongdoing of the consumers; they just try to get more for their meager amount of money. It is not wrongdoing at all — it is just fundamental economic principles at work. Similarly, any country which becomes the source of cheap will eventually rise up and pass the hat to the next. The process will not stop but neither will it move much faster.
Of course, Truth is painful. Let's just lay blames somewhere. That's easier on our mental health.
From Tomm, Des Moines, IA I have absolutely no sympathy for these or any other companies who outsource to Asian or MidEast countries. I also keep a list of these companies so as to be sure not to do business with them.
If it can't be made right here in the US then you simply don't need it.
Let's put the 'slave labor' argument (joke) aside and talk about fundamentals. How are we increasing the value of our own coutry if we're buying goods imported from abroad? Especially the Asian and MidEast countries that are laughing at us all the way to the bank while our own people and economy struggle?
Does anyone realize, or care, about the large percentage of the US that's 'owned' by Japan and China? Look at Iraq…they have plenty of their own capital that they're hoarding while we give up our dollars (and lives!) to help them rebuild.
Too many in this land need to realize that we cannot begin to help others until we first help ourselves.
From Andy Werback, San Jose, CA For years, I have believed that the Walmart style of low prices at any cost has been the root of many problems we face today. Low cost just means you'll pay the price later – lost jobs, environment, it all works together. I'm glad to see China facing Reality. Maybe more countries should do the same.
From Billy, San Diego Yeah!! I'm so excited. China isn't our friend, yet we send them all of our technology. Glad to see China is more expensive…Die China, die!!
From Gary Indianapolis Ind. I'm glad to hear the chinese workers are demanding safe working conditions,a cleaner environment and wages that will allow them to support their families. huh….sounds like my union? Hope the fat cat ceo's that lined their pockets on the backs of cheap labor while polluting their country get whats coming to them.
A HUGE cut in their pay and the responsibility of cleaning up the environmental mess they made.
From charles The consumer has more power than any other link in the chain. Sean's comments may be hard to take but ring true.
I am a mold maker (now designer) for the last 30 years and have seen a lot change in manufacturing. When you go to the store and pick a cheaper product made out of the country you need to look in the mirror and understand that companies react to what you buy. I've seen more than my fair share of folks in manufacturing pitch a bitch about foreign competition only to be wearing a ball cap or other garment that declares buy American that is produced elsewhere and bought at Wal-Mart . If Americans were value shoppers, some, not all of this migration overseas would have not occurred. I'm not a big fan of legislating markets but demanding that foreign suppliers be held to the comparable standards for workplace safety and environmental stewardship along with factoring government subsidies does make sense to me.
From John Smith Birmingham Alabama This is wonderful to read. The rise of China is the greatest threat to international security and economy that we face today. As their costs rise, maybe we will begin to see jobs return to the United States and Europe. It's despicable that profits come before American and European workers. China has not played by the rules – and they still don't – leading to American and European workers being hurt: going hungry, lacking health care, and being unable to advance socio-economically.
From Grace, Richmond, IL There are many factories in the United States of America closed that could make products instead of China. I know a great number of people who would be willingly to work for low wages. How about hiring America? I always pay more for made in America products or I just don't buy it! It is time for Americans to unite or viva la revolution!!!!!!
From Mark C., Ringoes, NJ It was bound to happen. And I could care less about these self serving business owners crying about it. How about taking less profit for your four houses and 5 cars and 4 yachts and hiring American workers at a living wage? Then maybe someone could afford to by the crap you are selling.
From Henry Greenville Va. I hope that the owners of companies that have destroyed American jobs to go to China lose everything as their workers in America have lost because the loss of their jobs. They are traitors to America and to the American worker. To hell with wall street.
From Jim Cheng I like this trend. I wonder just how expensive things have to get before manufacturing will actually begin to return to this country. What is the breaking point or "demand destruction" of this process? For gas it was $4.5.
From Scott, Winchester, VA As India, the Philippines and China experience better wages and working conditions, they will rise to the level that American workers are falling to.
When equilibrium is reached, it won't matter where in the entire world businesses set up shop; ALL workers everywhere will be compensated in a comparible manner, at the same relative cost to corporations.
Worldwide Unions will probably continue to develop, in order to represent the interests of these common workers.
Personally, I'm rooting for the workers! These multi-millionaire corporate executives don't deserve much sympathy when they pad their bank accounts at the expense of hard working folks who can barely put food on the ta ble!
From Herman Preus, Paris, Tennessee As a former toolmaker who was driven out of business in the late 1980's by such cutrate imports, I feel no sympathy whatsoever for any US manufacturer, large or small, who chose to outsource their work to Hong Kong, Taiwan, India, China, South and Central America and every other Third World cheap labor pool at the expense of their fellow-Americans' livelihoods.
While these former customers of countless defunct toolrooms like mine knew very well why the Chinese imports were cheaper, they didn't care as long as they could keep on pocketing the profits; which they have done right handsomely.
In order for their products to pass in interstate commerce, our domestic manufacturers are required to attest that they pay minimum wage, overtime etc. and are in compliance with OSHA and Clean Air standards.
The Chinese importers have never been subject to such regulations.
Unfair? Certainly. Will anything be done to correct this glaring inequity? After twenty plus years, I'm not holding my breath.
In the meantime, these particular manufacturers not only deserve to be 'crunched', they need to get thoroughly flattened, and my only regret is that it didn't happen them
From tater58,knoxville,tn Well we've sent our toys, pants, gloves, most of our abililt to manufactor overseas and now we will get a lesson in Business 101. after we go for fast profits and the foreign suppliers get control the prices will go up !! Give me a break,, now their profit margins will be getting much better. They don't have to be cheaper any longer, just competitive so our people that woould make these tings can't justify making the investment that it would take tio get back in the manufactoring process. When our car companies finally bite the dust it will happen there also.Tater58 over and out
From EAJ, Chicago, IL I say good for them and it's simply the chickens coming home to roost. They're getting what they deserve – chasing cheap labor will burn you EVERY time. As has been stated before, these people were just chasing the cheap labor cost and upfront cost-saving, never doing due-dilligence and planning for when (not if) cost would rise, which is inevitable. I do not feel sorry for any of them. And now these people's attitudes are one of how dare the Chinese want fair labor practices and rights. but the problem is these people (those mentioned and other corporate execs) are looking to tap the next low-cost source, India – Cuba – certain parts of South America and still trying to crack elusive Africa. All of this instead of investing at home – North America.
From Sean, Dracut, MA Before castigating the business owners in the story, consider that most of them are reacting to what "the market" wants. The market wants cheap prices – and will vote with their wallets every time. We have seen the enemy and he, my fellow Americans, is us. I have been traveling to and importing from China for about 15 years. I started out making products in the U.S. Unfortunately, American consumers, despite often loud pronouncements to the contrary, will buy the cheaper product regardless of where it is made. If a U.S. made product is 10 cents more than a foreign made product, guess who wins? In many industries there have been holdouts – companies who have tried to compete manufacturing here in the U.S. Few have made it. Why? Because we all want more for less. Because we would rather pay $ 9.97 for a toaster and throw it away in a year than pay $ 39.95 for a domestic one that will last. Disagree if you like but this is stone cold reality. That is the primary force that motivates business owners to look for the lowest cost – no matter where it is made. We're hooked on cheap. It’s easy to claim that the problem is business owners selling out their domestic workers to line their pockets. They’re a good target to lay the blame on and leave us and individuals the innocent bystanders. But this is an overly simplistic and often inaccurate generalization. I'm trying to start up a manufacturing line to make domestic product once again but I'm benchmarking our products against my competitors – who all source from Asia. I don't know if we'll be able to do it or not. But we’re going to give it a try.
From Scott, Houston, TX We as Americans should have seen this coming for years! I have seen us import oil to make plastic pellets; we ship them to China so they can make our beloved Happy Meal toys and send them back to us. That is too much transportation and now that fuel prices have soared we are feeling the pain everywhere. Hopefully American companies will realize that the cost of manufacturing in the states is not all that expensive and start moving it back. After all America started the Industrial revolution, we just became lazy.
From Martin Boulter Lehi, UT This situation was only a matter of time we have seen this countless times. With Japan, then Taiwan, now China. Even if you have to pay a little more in the U.S. to manufacture your goods, in the long run it makes more sense to keep the jobs in the U.S. and raise your prices to compensate. The real issue here is greed and always has been, the entrepreneurs need to learn that keeping it at home makes more sense, and in the long run costs more to move it outside the U.S. not just in profits, but in economic, and environmental costs that are startlingly high.
From Peter Andelson, Atlanta, Ga. My mother used to say "their chickens will come home to roost one day" to describe how you get paid back for doing the wrong things. Well, I guess US businesses better start building henhouses! I don't feel sorry for these companies that outsourced and are feeling a pinch at all. It's too bad that the stockholders in US corporations are so hung up over profits and not concerned about US workers or US sovreignty. Our economy is in the tank thanks to all those jobs that were outsourced.
I don't have enough cash to invest in big business other than what I do to help the company I work for, so all I can do is the best job I can to make sure that my job is kept in the U.S. but I feel sorry for the unskilled laborers here. It's tough to compete against a country that allows its citizens to be overworked and taken advantage of like China does so that a few hundred people who run the country can live like kings.
From Rob, Houston, Texas Good for them. They deserve it. These companies don't give a damn about what is good for the U.S. or even for their companies in the long term, only for how much quick profit they can make. If you want to look for the culprit in this situation, look no further than the U.S. advertising industry, who has been working for year to dumb down the American public so that they will buy, buy, buy, the cheapest goods regardless of the long term effects on the nation. How dumb are we? I hear that they will be selling Chinese cars here pretty soon, and their will plenty of stupid American's who buy them. I feel sorry for the folks in this country who have seen the writing on the wall for years, because we will all sink right along with the fools.
From Frank, Fort Worth What? You mean US companies can no longer depend on slave labor for obscene profits? What are we going to do? Time to entertain Vietnam. That's where we can move production to! Then after Vietnam becomes too expensive, Myanmar.
From Brian, East Meadow, NY Its a shame that we had to wait for China to solve the problem of too many manufacturing jobs leaving the US. I don't mind paying a few cents (or dollars) more for stuff (I could probably do without anyway) if it means creating jobs here in the US. Oh – and shame on the million-dollar-bonus-CEOs who are complaining about losing money because now outsourcing has caught up with them.
From John, Seattle WA It is stunning to see so many people complain about the rising costs of China. Now that the Chinese are finally taking more aggressive steps to take care of their environment and their labor practices, these "business-people" that previously moved their companies out of America to save money will have to find different countries that force school girls to make their products for a dollar-a-day.
It's morally reprehensible.
From William Hanson, Winston-Salem, NC Those who put all their eggs into one China basket will pay dearly because those who were laid off when outsourced may not come back because they have either found better jobs or choose to retire. Execs need to have vision to lead; instead they merely look at today and how much they can pocket after outsourcing and destroying the American dream. What goes around comes around!
From B Simon This article is ridicolous – all the companies mentioned who have been impacted by rising costs are complaining about no longer being able to negatively exploit the resources in china… in the US we put protections in place for the environment and labor decades ago and all have impacted costs! Now that China is doing the same to end the destruction of the environment and slave labor of thier people in "12 hours shifts" with no contracts or social security.. US outsourcers are complaining! We deserver the selfish, destructive business environment we have created!
From Alan – Chicago, IL I'm been telling my Sr. Exec this for years, and they just keep pushing more and more manufacturing over there. Now China pulls the VAT and the costs sky rocket, oops, maybe it wasn't the best idea close down all the factories in the US and Mexico, and send it there. We are loosing money hand over fist. And they are looking at me to figure out how to fix it. Big it back to North and Central America.
From Michael, SLC, UT Touche'. I for one am very glad to hear China is no longer a bargain. As an AMERICAN I feel it is extremely important to ensure the best for AMERICA. For years manufacturers have chased the lowest production cost no matter how it affected AMERICA and would sell their mother if they could make a profit. This worked because most Americans consumers are selfish and have zero national loyalty. I for one will gladly pay more for a qulaity item made in AMERICA knowing that my country benefits in many ways from the sale. We have become a distribution center for Chinese made goods (read WalMart) for to long and the trend gets to stop now. China is a massive problem for AMERICA…just look at the amount of espionage that happens daily and is directly linked to China ! ! !
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I have no sympathy for these vultures. Oh darn, China wants to actually try to control the pollutants these clowns want to release into their atmosphere and environment. Oh no, China's workers want fair wages and fair hours. What is an aristocrat oppressor to do when the proletariat doesn't want to be oppressed anymore? Apparently try to find somewhere else to make cheap junk.
How about they invest in America, and make quality goods in America, and when our economy is healed we'll be able to pay higher prices for higher quality shoes and toys and so on.
These swine can go bankrupt for all I care.