FOREIGN COMPANIES COMING TO USA

With labor and energy costs lower, foreign manufacturers are building plants in the US and hiring.

British based Rolls-Royce is making parts in A and shipping them to jet engine factories in Europe and Asia. Germany-based Siemens is now making power-plant turbines in N.C. shipping them; mostly to Saudi Arabia and Mexico.

Why the sudden love for the US by foreign manufacturing companies. Many want to be closer to the US as the worlds No. 1 market, increasing U.S. assets of low energy costs, and the dependability of domestic power, higher productive workers and the cheap dollar.

Ant its not just the foreign market that is coming to the U.S., since 2010 more than 200 companies, mostly U.S. based have brought back production to the states, creating about 50,000 jobs.

Jumping forward, by 2020, on shoring is expected to generate a few million U.S. manufacturing jobs, including hundreds of thousands at foreign companies.

Interesting, foreign manufacturers pay U.S. employees 14 percent more than the industry average, which may for the first time in decades force others to increase their minimum wage to keep their workers instead of holding them hostage now because their is no where else to go.

Maybe the winds of fortune are blowing with us now instead of in our faces.

Advertisements

One thought on “FOREIGN COMPANIES COMING TO USA

  1. First of all, anyone predicting economic or job conditions in 2020 is delusional. None of the top brains at the worlds largest trading companies, the government or the Fed can even predict job growth next month accurately.

    Second, according to the BLS the US has 135,474,000 full time employees in April. The US must create at least 125,000 jobs average per month just to absorb the new entries into the job market (high school/college grads, etc.). That’s 1.5 million per year just to break even. Add to that, as of March, the US has over 11 million officially unemployed and another 90 million working age citizens without a job. A “few million” jobs over 7 years is a drop in the bucket.

    Lastly, the re-industrialization of America and eventual wage parity between US and Chinese workers has been discussed for years, with little to no debatable change to date. But be careful what you wish for. A shift in manufacturing jobs to the US would indicate the era of cheap foreign labor has run its course (I can assure you it hasn’t as I have friends in Mexico who claim a $7 a day job is a good one). The increase in labor costs associated with US employees, Obamacare and the falling dollar will push the cost of the things you buy much, much higher. We all love to complain about jobs sent overseas until we go to Walmart to buy more cheap crap from China.

    Tidbit: Foxconn, the Chinese manufacturing company that makes all your Apple Igadgets, employees 1.2 million workers. That’s one company. Think we’ll ever seem them made here in the US?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s