There are also network effects. Your plant that is energy intensive is closing? Now other manufactures must increase their cost as transportation is increased and local contracts harder to get. Your chemical plant, which has operated within good bounds for a decade can't get a permit to expand, or is protested? Your intake products now either go up in price or become unable to attain them at all.
And even still - there's a lot of manufacturing in Easter Europe. Go to IKEA or an appliance or auto store. You might be surprised to find where things are made these days. Often they'll say "made in EU" instead of the actual country name though.
(China's predicament is not much better, with the added wrinkle that there's absolutely nothing whatsoever they can do about bad demographics due to their size, whereas Central/Eastern Europe can import people once we collectively get over ourselves and let go of uppity xenophobia).
There IS labour over abundance. Unemployment in most EU countries is at record highs. And it shows no sign of slowing down.
The problem is it's mostly white collar labor overabundance. And those college educated people aren't gonna want to make sneakers in sweatshops.
Plus scaling industrial production is one thing, but if proletarians are unable to afford them because wealth distribution is exponentially concentrated, what is the point?
No but they are significantly cheaper than an employee, A robot can pick up something and move it from A to B for upwards of 10 years. The programming and setup are a fraction of the time a robot can operate reliably
I cannot stress to you how reliable and little maintenance is required for a $60,000 fanuc robot.
The difference between the USA and, for example, China, in manufacturing is the difficulty of getting a new factory built.
If you have a product designed and ready for production, it will take you years to build a factory in the USA. All the while you'll be losing money managing the build, paying your employees and, most importantly, letting your competitors get a head start.
Likewise, if you build that factory in China, it'll be up and running in less than a year and you can start making your R&D money back, get to market before your competitors and not bleed money keeping your companies doors open.
The labor costs are easily offset by removing the logistics of moving the product.
Tesla Gigafactories are a pretty good example of this. The first two took ~3 years to build in Nevada and New York. The third, in Shanghai, took 10 months.
I have a friend who works as an environmental engineer at a chem plant. They work hard to keep things safe and clean, and rigorously monitor their output.
I'm sure we could do even more if we weren't competing in meany areas against legal jurisdictions which DON'T care about such things. We aren't "priced out". We are regulated out and out competed by jurisdiction which have many fewer labor laws and much more lax environmental monitoring. If we are out-competed on product, then we deserve to loose, which is where libertarians and free-trade have a point. But if we are out-competed on keeping people and the environment reasonably safe? That's when we enact trade barriers.
That is how you actually keep the environment and people safe.
Trade barriers however are bullshit and don't work. And they are a lie. You are not building IPhones in the US because building an IPhone in the US would cost three times as much as it would doing in Shenzhen. And people would not be willing to pay that. And that's why they get an exception from the trade barriers. And that list of exceptions basically goes on and on and on...
Anyway, what works, works. This is especially true if that industry had been in the area for long, and therefore has access to a lot of skilled and experienced workers.
But it does not make sense to cry and complain that building such a thing from scratch is "banned". No, it is not banned. It's just a stupid idea, and there are laws against stupid ideas using limited natural resources.
We do manufacture things. Just not in California.
So why does it even matter if California bans manufacturing dangerous things? Who cares? Just manufacture it in some other state. As a bonus, you don't have to pay those high California taxes.
In what world is this a problem?
Texas beats California in total value of manufacturing shipments only because because of its petroleum and coal products manufacturing. And California beats Texas in manufacturing employment.
California has the highest manufacturing employment and most manufacturing companies of any state, the second highest (behind only Texas) dollar value of manufacturing output.
It is just below the national average in manufacturing as a share of GDP, but its also the fifth highest state in GDP/capita; leaving it still above average in manufacturing GDP/capita.
You may want to ask your LLM to do very detailed research.
Maybe those that own the wealth should pony up more in taxes or give away their factories to the workers so they can run it themselves (something tells me they'll do a better job than greedy owners that just care about money rather than building a community).
And the other limiting factor is knowledge/education. Your region has been known for 100 years to be highly skilled at building $THING? That knowledge is still there and has not fully retired? That's also a resource.
"High labor cost" is a smoke screen. We are not talking about acquiring from a pool of lazy dancing monkeys. The labor you need are for tasks that machines can not yet do. Those jobs are either really shitty, or need a lot of qualification.
Due to this: If you want to build a factory in an area where there aren't already similar factories, you first need to build a University and come back 25 years later.
The articles author should next try to build a business based on offering camel riding in Greenland. Camel riding? Banned in Greenland!!!1
