West Branch
5 year old buck +
It’s the Domino affect. I worked for the Parent Company of Porter Cable, Delta and several other power tool companies. Once the 800 lb gorilla in the power tool business (Black and Decker/Dewalt) started to source their tools from China you either followed or were out of business. Dewalt could sell a commercial quality cordless drill for basically what it cost us to manufacture the unit so either you followed the pack or you got out of the tool business. It was a very sad experience to see the closing of plants and transferring of know-how to china.
During those years I got the chance to experience some outstanding training on foreign markets. I was in a session on China where one statistic absolutely stunned me and for parents should be conveyed to their children. This is a quote, “At all times there are over 300 million unemployed young men in China looking for work”. That’s more laborers looking for work then there are people in the US and makes labor basically free in China. That was 20 years ago. Parents need to convey the importance of an education to their children as the pressure on wages from China, India etc. will be very high for many years.
A few years ago they were saying that wages on the eastern cost of China would be comparable to the SE US (South Carolina, Mississippi, Alabama, etc.) in 2015. China is huge so the freight costs from western China would add up with the lower labor from out there. I haven't read much about that lately, but they have been expanding manufacturing down in the SE in recent years. Definitely not the wages of years ago when the guys are getting $12-$14 an hour.