Comments about ‘Farewell to China: U.S. companies coming back home’

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Published: Friday, May 24 2013 4:45 p.m. MDT

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JT4
Salt Lake City, UT

I know I don't understand everything involved, so I'm asking for someone else who does. When we have citizens of Mexico coming to the U.S. illegally to work for low wages, why do we not have more manufacturing being outsourced to Mexico rather than China? I do occasionally see "hecho en Mexico" labels on clothing. Why is there not more of it? I'm guessing wages in Mexico fall somewhere between those in China and the U.S. Wouldn't shipping costs from Mexico be less than from China? It just seems at first glance that the difference between manufacturing in Mexico and doing so in China would be negligible. And if that is truly the case, we would address two issues--the other being unwanted illegal immigration--at the same time.

Kellie Wood
Orem, UT

I have an American friend who was in the middle of constructing his business in Mexico when he had to abandon the project because so many people were being murdered from the drug wars. That's one reason why I would never open a business in Mexico.

Secondly, I also had a bad shipment of clothing come from China. It's really best to manufacture here in the USA and give our legal citizens good-paying jobs. So what if we have to raise the cost of the product a little to cover costs. We should be glad to pay the money to keep our American citizens employed!

Baron Scarpia
Logan, UT

@JT4

Mexico is actually too expensive for most American companies (U.S. companies used to manufacture there 20 to 30 years ago), so China, despite its distance and communist government, is actually more economical. Though that is changing, so the new cheap place to manufacture is Bangladesh (note the recent clothing factory disasters that is now forcing the manufacturers to ensure worker safety -- thus, the costs there are likely to rise and force companies to move on).

I read an article recently that Africa is the next new frontier for cheap labor -- only the governments are not stable enough for most corporations to make the economics and risk work.

The one saving grace that may bring companies back to America is the cost of energy. As shipping costs continue to escalate due to high oil prices, it may get cheaper and more convenient to manufacture at home (or near consumers). The problem with working in America is that workers expect rights and safety, and the environmental regulations are too high. Much easier to pollute in China and southeast Asia. If energy prices fall, however, expect more off-shoring for manufacturing.

DVD
Taylorsville, 00

I hope the conditions and virtual slavery conditions in these countries continue to be exposed for what they are. Some international regulations and treaties could go some way to reduce the extreme poverty and suffering endured by the workers there.

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