From a few sources, I have heard that a devalued dollar can mean more exports, making manufacturing more feasible Has this been the case? I try to buy American whenever possible, but it's rarely even an option nowadays.
And those not aware, here is a pretty comprehensive list of goods made here.
Basically; yes.
It'll modify "outsourcing" as we know it, too.
many euro manufacturers are setting up US plants to produce cars due to the weak dollar.
Works like this (these numbers do not reflect real life, just for demonstration.)
2000 - 2 euros to the dollar. Us Worker costs $40k a year. So a US worker costs a euro company 80k euros.
2008 - .5 euros to the dollar. Us worker costs $40k. So a U.S. worker costs 20k euros.
Over the past 8 years the euro has gained significant comparative value in comparison to the dollar while wages have been pretty stagnant. As a result US labor has gotten quite a bit cheaper for a European country. This has helped reduce the decline in American manufacturing.
side note http://en.wikipedia.org/wiki/Devaluation
devaluation specifically implies an official lowering of the value of a country's currency within a fixed exchange rate system
depreciation is most often used for the unofficial decrease in the exchange rate in a floating exchange rate system.
the dollar floats.
How is the dollar doing compared to China and India's currency? For outsourcing to stop, the currency of these countries would have to become strong enough to the dollar that it's not saving you money to go there. Of course, if we ever get to that point, god help us all....
We stopped importing our braided s/s metal hoses since we can weld them up domestically just as cheaply as we can purchase them and pay for a container to ship across.
Of course, we are using Chinese flanges on the end to achieve those cost savings.
pete240z wrote: Of course, we are using Chinese flanges on the end to achieve those cost savings.
At least until your suppliers' next "adjustment" 
We've been seeing those on a regular basis... like twice a quarter!
I like this because America needs to embrace its Industrial roots. Industry provides jobs and here in America, you can always fix problems like environmental damage. In China or India, such issues are of little concern.
cost of shipping is also killing off shore manufacturing. If the item is heavy it is getting to the point where shipping is no longer plays into the economies of scope/scale models.
I think it's going to have the best benefit to industries that can vertically integrate. Here in this part of SC the only industry used to be textile mills. They used to run batches of fabric per order, with a certain amount of down time to swap over from one type of fabric to the next and maintain the machinery. At some point those mills were gobbled up by huge companies, companies big enough to keep each mill running just one fabric for very long periods of time and makng the plant itself more efficient with regards to output.
With cheap shipping it became easy to just shut down the whole mill when that fabric wasn't needed anymore, the cost of re-tooling and re-supplying being nearly the same as starting up a new mill overseas. Now that shipping has become a concern, both because of the weak Dollar and the cost of fuel, it has to become more cost effective to keep a mill open here at some point.
If someone had enough start-up capital I'm sure a couple of old mills could be opened and staffed on fairly short notice. If they could then integrate just a bit, produce something simple and universal like towels or sheets, and get a couple big hotel chains onboard with a cheap cost and "American made" campaign, the industry would resurge. Niche players can survive in the internet age, just need to get things started again.
Gearhead_42 wrote:pete240z wrote: Of course, we are using Chinese flanges on the end to achieve those cost savings.At least until your suppliers' next "adjustment"
We've been seeing those on a regular basis... like twice a quarter!
we get monthly containers and they negotiate and raise prices every month. ouch!
We're getting nailed with shipping and steel prices. Scrap Ferrous was $400/ton Dec 07. It's now $700-$800/ton. It'll be over $1100/ton by the end of the year.
If I remember correctly, I read recently that shipping a 40ft container across the Pacific used to cost $1.2k now it is $5k. That is a big increase.
I too have read about some manufacturing returning.
It's intriguing how the job market cycles with its own momentum.
Imagine what would happen if we (American industry) would have thought up great ideas like the television, the home computer or the automobile! I mean those Japanese are so much smarter than we are to have invented them all to sell to us (American consumers).
(Officially I do not hate capitalism I despise arrogance)
Oh btw...
The manufacturing jobs that paid 40K/yr 15 years ago are now going stateside for $9.50/hr through the local temp agencies to bypass any insurance and legal fees.
MitchellC wrote: It's intriguing how the job market cycles with its own momentum.
Everything does, given time.
John Brown wrote: Imagine what would happen if we (American industry) would have thought up great ideas like the television, the home computer or the automobile! I mean those Japanese are so much smarter than we are to have invented them all to sell to us (American consumers).(Officially I do not hate capitalism I despise arrogance)
I think those were invented by Americans or Europeans, not the japanese. Farnsworth from Utah invented a TV and computers are the invention of US or Europe. The japanese only copy, like the Chinese or India(e.g. Mahindra Jeeps) are doing now.
phillyj wrote:John Brown wrote: Imagine what would happen if we (American industry) would have thought up great ideas like the television, the home computer or the automobile! I mean those Japanese are so much smarter than we are to have invented them all to sell to us (American consumers).(Officially I do not hate capitalism I despise arrogance)
I think those were invented by Americans or Europeans, not the japanese. Farnsworth from Utah invented a TV and computers are the invention of US or Europe. The japanese only copy, like the Chinese or India(e.g. Mahindra Jeeps) are doing now.
I think he was being sarcastic.
i work for an international company, and projects that were engineered in Europe are now being engineered in USA because we're the "low-cost supplier".
which is cool with me because i'm going to germany in august. hello, Nurburgring? yeah, i'll be there soon.
