The U.S. should encourage more manufacturing here at home: New Balance CEO | Daily Tick... - 1 views
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The United States today has fewer people working in manufacturing than it had in 1941 before the Japanese attack on Pearl Harbor and the rush to produce weapons. But not all U.S. manufacturers are shadows of their former selves
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Rising labor costs in foreign markets
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incentives to make things closer to consumption
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Investment and innovation
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global economy
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U.S. manufacturing is expanding
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It's surprising to me that 25% of New Balance's shoes are made in the U.S. and that 1300 employees are working in the U.S.
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This connects to the theme of Mobility because New Balance has to determine what would be the best way for them to transport their goods to the markets and consumers, at the lowest costs.
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This relates to industry because it shows that the labor costs are increasing in foreign countries, like China that is known for cheap labor, and it will cost less for the company to make their products in the U.S. and have them closer to markets. This is a situation factor because of transportation costs.
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Will domestic product of goods increase and how would this affect countries that are currently "hubs" for cheap labor? How will those countries react?
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http://businesstheory.com/136-increase-chinas-minimum-wage-compete-global-manufacturing/ The article above relates to this article because it talks about how higher wages in China will push factories to other places with cheaper labor, like Vietnam. The gap between U.S. and Chinese labor costs are shrinking, which helps explain why companies like New Balance are able to have industries in the U.S. instead of foreign countries.
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