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Why Can't the USA Manufacture?
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Jul 10, 2020 13:29:00   #
bodiebill
 
neillaubenthal wrote:
Those that rail against the evil corporations and their profit motive always ignore the real reasons manufacturing goes overseas...people want low prices and a corporation has a legal fiduciary duty to the shareholders to make a profit for them. That’s how capitalism works.


My company designed and manufactured the highest quality (long-life), safest, and most expensive oil/gas drilling rigs. We were number one in the world market with the highest price!
We manufactured in England (UK) since 1925 because many of our foreign customers used Sterling as the primary currency. We went to Japan in the 1960's because of domestic capacity constraint, quality and regional market requirements.
It had nothing to do with political philosophy, just fundamental economic logic.
We licensed the Chinese to manufacture "last generation technology" for Chinese domestic market consumption only, no exportation was allowed in the license agreement.
Our primary world wide source of manufacturing was in the US, which was the highest cost and selling price source world wide, and we retained the number one market share!
Quality and design were our primary market advantages.

Our major plant was in California for over 70 years until the "environmentalists" forced us to move to Texas.

"Consumer products" generally are made world wide where cost and selling price are primary requirements. The same rules do not apply to specialty (non-consumer) products.

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Jul 10, 2020 13:30:42   #
davesit Loc: Media, PA
 
incognito wrote:
You are 100% correct--- it is Leftist politics BS. There was ample time for these hospitals to overstock on the PPE's. Maybe it is time for a few folks to receive the big Barium E but careful they will run out of enema bags and will reuse the old ones atleast 5 times. Pray that you are first in line. Oh sorry I forgot you lefties don't believe in PRAYER.


Glad your prayers have been such help!!

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Jul 10, 2020 13:43:14   #
Charlie157 Loc: San Diego, CA
 
A couple of things have happened. Labor workers were being paid unliveable wages. This great g unions who fought for their members like the UAW AND Teamsters as well as UBEW, and others. The cost of the increase in wages were passed to the consumers. This was so that the profits were maintained to satisfy the stock holders.

Another thing that happened was, in order to protect the citizens,bills were introduced and restriction were made to manufacturers to prevent toxic chemicals from being emitted into the water and air. Again the cost were moved on to the consumers. Increasing the cost of the item and retaining the profits for the stock holders

After awhile people realized that to keep cost of production down you can see the manufacturing to countries that don't have union or restriction on manufacturing. The profits could be kept up

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Jul 10, 2020 13:44:22   #
eskiles Loc: Palmer Alaska
 
LWW wrote:
Prior administrations kowtowing to the ChiComs.

Leftist politics that have de-industrialized the west.


Horse pucky, put the blame squarely where it belongs, Donald Trump has done everything in his power to make this problem worse! He ignored it from the beginning, he has insisted the states open for business as usual before the virus flatlined, he is now trying to open schools even through the spike! Left wing politics had nothing to do with moving industry from America! Corporate greed did that! Greedy Capitalists moving production to countries where there is no unions, no regulations, and cheap labor is at fault!
And guess who champions Capitalism? The Republican Party!

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Jul 10, 2020 13:49:42   #
bodiebill
 
Collhar wrote:
So true. All their garages are chucker box full of needed supplies.


The so called "gasoline shortage" in the 1970's was primarily caused by "hoarding"--keeping your gas tank full moved millions of gallons of gas to the "mobile tank farm" (automobiles) and drained the supply chain.
The OPEC oil embargo was also a major factor that drove hoarding hysteria.
People naturally hoard for personal protective reasons.
Gun and ammo shortages in past decades were driven by the same "scare" factors.
"Anti-gun Obama" became America's number one gun salesman!

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Jul 10, 2020 13:57:29   #
maxlieberman Loc: 19027
 
Let's keep the political crap out of this.

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Jul 10, 2020 13:58:33   #
DIRTY HARRY Loc: Hartland, Michigan
 
[quote=traderjohn][quote=jerryc41]With the surge in Covid infections, medical workers are once again being hit with shortages. We don't have enough masks, gowns, gloves, or face shields. These aren't high-tech items. We should be able to crank these out by the millions. What's the problem?

A new shortage - coins. Stores have signs asking for the correct change.[/quote[/quote]

US coins are not stamped over-seas.

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Jul 10, 2020 14:01:56   #
rehess Loc: South Bend, Indiana, USA
 
Wingpilot wrote:
What amazes me is that before this all started, our hospitals, etc., were apparently understocked with gowns, masks, gloves, ventilator and respirators. Apparently they’ve all be short-sighted. Then they were in a panic because of the Covid-19 pandemic, but somehow managed to acquire what they needed. Then things simmered down a bit, and it seems like the same medical community went into a coasting mode, so instead of stocking up (because there was every indication that this thing could resurge again) they just sat there. Now, once again, they’ve been caught with their collective pants down. There’s something wrong with this picture here. U.S. manufacturing could, and should have risen to the occasion instead of sitting on its laurels, and kept on producing masks, gowns, etc. in order to avoid a repeat of the first wave. And now there’s a second wave and their caught short again. you’d think they’d learn from recent history. Apparently not, or they’re all suffering from a permanent case of cranial rectal inversion, or optical rectitis!!
What amazes me is that before this all started, ou... (show quote)

Hospitals practiced “just in time” inventory, just as everyone else did, as a means of controlling costs. Their suppliers also practiced “just in time” inventory as a means of controlling their costs. Then the world-wife demand went up. Sending supplies by ship is cheapest, but that takes time. If I understood our Governor correctly, he has short-cut the whole process by having in-state companies supply needed items which can be sent via truck to where needed within a day.

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Jul 10, 2020 14:11:02   #
rehess Loc: South Bend, Indiana, USA
 
clickety wrote:
Re: coins, I think that is to “limit the spread” of Covid 19. I don’t think they want to handle change, I don’t. I have not accepted any money, coins or paper back in the last four months and just consider overpayments as a thank you for being open.

Our younger daughter, who works in retail as an assistant manager, spends her day explaining the new rules to irate customers, one of which is “no cash” - pay by “card” or go elsewhere. If people in the Cincinnati area continue to be sloppy, that shopping center store will have to close anyway.

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Jul 10, 2020 14:12:33   #
TriX Loc: Raleigh, NC
 
Another valid original question by Jerry is immediately turned into rabid political finger pointing by attic dwellers. (almost every single new thread by the largest poster on this one is an attic post, which should tell you something). As long as we allow this divisiveness and encourage it to continue, America will become more and more divided and decline, at the one time when we need to unify as a country - even sadder than the decline of our manufacturing capacity, which is indeed disturbing. Civility is dead (encouraged at the highest level), unity is dead or dying, tolerance is dead or dying, belief in scientific and medical fact appears to be declining, replaced by ignorance and conspiracy theories, and general meanness and virulent political arguments overshadow any attempt at respectful discussion. You would think at a time of National crisis such as we find ourselves in, Americans would unify and rise to the occasion. Sadly, only a percentage of our population seem to get IT. How sad for our children and grandchildren if we don’t stop this childishness.

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Jul 10, 2020 14:18:42   #
rehess Loc: South Bend, Indiana, USA
 
TriX wrote:
Another valid original question by Jerry is immediately turned into rabid political finger pointing by attic dwellers. (almost every single new thread by the largest poster on this one is an attic post, which should tell you something). As long as we allow this divisiveness and encourage it to continue, America will become more and more divided and decline, at the one time when we need to unify as a country - even sadder than the decline of our manufacturing capacity, which is indeed disturbing. Civility is dead (encouraged at the highest level), unity is dead or dying, tolerance is dead or dying, belief in scientific and medical fact appears to be declining, replaced by ignorance and conspiracy theories, and general meanness and virulent political arguments overshadow any attempt at respectful discussion. You would think at a time of National crisis such as we find ourselves in, Americans would unify and rise to the occasion. Sadly, only a percentage of our population seem to get IT. How sad for our children and grandchildren if we don’t stop this childishness.
Another valid original question by Jerry is immedi... (show quote)



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Jul 10, 2020 14:28:39   #
Jerry Coupe Loc: Kent, WA
 
LWW wrote:
Prior administrations kowtowing to the ChiComs.

Leftist politics that have de-industrialized the west.


I doubt that the US government has ever directly moved a US manufacturing facility to China.

Corporations have made the decisions to move production out of the US. Many reasons for this, but profit maximization and maximizing shareholder return are clearly major decision points.

Additional factors will include: Companies not willing to pay workers fair wages. Regulations that required businesses to clean up processes to reduce water pollution and air pollution.

I contend that it is corporate profit decisions that is the number one reason manufacturing has moved overseas.

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Jul 10, 2020 14:37:25   #
Jerry Coupe Loc: Kent, WA
 
Bill_de wrote:
Are you saying that liberal business people don't try to maximize profits? The goal of a corporation is to maximize shareholder wealth. Shareholders include all the working people whose 401k and pensions depend on those profits. I'd hate to retire on Social Security alone. Oh, wait, we can ask the government for food stamps and welfare since corporate profits could no longer support my hard earned retirement plan.

The reason Walmart does so well is that the shoppers in our country want cheap prices. Fewer people today choose good service over lower prices.

---
Are you saying that liberal business people don't ... (show quote)


Profit is a necessary component of a successful business and profit is important for business to grow, higher new or additional employees, support R & D etc. The issue isn't reasonable profits, it is that over the last 30 years or so, the increase in profits going to shareholders and executives has increased significantly compared to compensation to workers and in fact, worker compensation is almost flat over the last 15-20 years. Consequently, the middle class, that made America Great, has all but disappeared.

Yes, Walmart has driven down costs and sells at lower prices. Folks shop at Walmart due to selection, and because low prices are all they can afford. But Walmart also leans heavily on its suppliers for long terms, doesn't pay on time and has been very destructive or at least disruptive to the vast majority of locations it has opened.

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Jul 10, 2020 14:53:07   #
srt101fan
 
TriX wrote:
Another valid original question by Jerry is immediately turned into rabid political finger pointing by attic dwellers. (almost every single new thread by the largest poster on this one is an attic post, which should tell you something). As long as we allow this divisiveness and encourage it to continue, America will become more and more divided and decline, at the one time when we need to unify as a country - even sadder than the decline of our manufacturing capacity, which is indeed disturbing. Civility is dead (encouraged at the highest level), unity is dead or dying, tolerance is dead or dying, belief in scientific and medical fact appears to be declining, replaced by ignorance and conspiracy theories, and general meanness and virulent political arguments overshadow any attempt at respectful discussion. You would think at a time of National crisis such as we find ourselves in, Americans would unify and rise to the occasion. Sadly, only a percentage of our population seem to get IT. How sad for our children and grandchildren if we don’t stop this childishness.
Another valid original question by Jerry is immedi... (show quote)


I have appreciated your contributions to the photography topics, TriX. I'm glad to now see you provide adult and sensible commentary here on the need for unity and civility. It may be a quixotic task to pursue those goals these days, but thanks for trying!

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Jul 10, 2020 15:01:02   #
sirlensalot Loc: Arizona
 
Politics and finger pointing aside for the moment - most, if not all manufacturers have moved to a JIT process which in reality all but eliminates what used to be considered inventory. Sellers have little interest in guessing what will sell and what will not, preferring instead to order just enough to fill the shelves with minimal (if any) product backup. Just one more step in keeping profits as the main goal ahead of customer convenience. This also led to the price over quality IMO. Blame who you like, but the main culprit in this environment is the American consumer. I think the rise in rain checks and dollar stores help confirm my opinion?

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