Speaking of Precision

Very interesting,

This excerpt is interesting

Word to potential workers: Skills not labor to work in Manufacturing.

Increasingly employers are looking for credentials for skills rather than 2 and 4 year degrees.

The interesting part is what doesn't seemingly has an impact on this country actually does. about 15-20 years ago, Japan experienced this, where every Japanese citizen wanted an professional office job and had no interest in what was seemingly nothing more that a trades skill. The machine shops had a backlog of work, but no skilled personnel to run the machines.

Thanks. Who'd have thought that their were fashion trends in career choice?

Milo

Economies of scale, cost of labor and cost of freight rule here.

There is very little Chinese gravel sold in the USA/Canada. Freight cost prevents it.

We used to have a freight barrier that helped the car industry - now we have roll-on-roll-off (RORO) car carriers, where cars are driven onto close spaced decks, end to end, and tied down quickly. When they arrive they are driven off quite quickly. Back in the 60's it cost 4 times as much per car and took a lot longer. Then labor in the USA for car is far too high. As a result 90% of UAW jobs gone - good riddance. Those greedy @#$%S are a major part of the problem. We have good economy of scale, just not good enough to fight off the high labor costs. In Korea the workers can spend 3-4 times as much time in finishing a car for export - which is why the dealer spends so much time in "dealer prep" = fixing badly made cars.

Free Trade - it can not work unless wages are the same in both countries for the same item made. As you can see by the dollar stores, there is no way to make that stuff in the USA, that filled the 5 and 10 cent stores of the past. It is all made in China in large scale automated plants. The use could not compete even if they got the product free and all they had to do was package it on a blister card.

Thanks for the insightful comment. Presume you meant USA not use. I was not seeing a lot of automation in China when I visited there. I am sure they are starting that in some industries, but they were looking to create jobs rather than automate and eliminate them. Had never encountered what you said regarding the Korean auto situation. Thanks. Milo

The classic Deming curve. After WW2, Japan could only sell trashy items here - toys etc.

Edwards Deming

Korea followed, but faster and now China.

We are reaching the point where all of a countries manufactured goods can be made by 5% of the work force. The USA has done this with food - in 1900 60% or so of the USA work force was on the farm - then came automation.

In time, we must decide if we want that 5% in manufacturing to be in China, and the USA people are on the dole or here in the USA?

It matters little, it is only 5%, plus 5% on farms. The other 90% what? Service industries?, or just give them $$, via a negative income tax?

NIT

We will make the $$ for this via export of Intellectual property? Possibly.

Challenges are coming

Drive out fear, so that everyone may work effectively for the company. (See Ch. 3 of "Out of the Crisis")
This is one of the many problems i face in my current job. As i develop new technology or introduce more advanced technology the employees see the action as eliminating their job. This causes fear and a definite resentment of me.