Getting out of the China Squeeze

Purely competitive companies in the world are squeezed between providing the best consumer prices through the most economical production

Enter China,

  • abundant resources
  • great infrastructure
  • mighty quick turnaround time – heck they’ll even build you an imitation Ferrari in 20 days
  • cheap labor

-  China suppressing their currency may be unethical on the global scale, but might be fiducially thoughtful cause they’ve got their billion people to support…they’re squeezed between providing for their people and growing their economy

-  Then there’s also the issue of Chinese workers young and old…and teens and kids too working 14-20 hour days to meet global demand…they’re squeezed between hunger of global demand and the hunger of their families…

Here’s what I think is happening…over dependence

here’s how I think we can get better and help them at the same time too…

 US :- what do they got that we ain’t got? Let’s see…

  • resources – check
  • infrastructure – check…acutally make that CHECK
  • turnaround time – yes
  • cheap labor…hmm…uncheck X 2

My take: We’ve got to figure out how to bring labor costs down…in every single industry…doctors and lawyers to auto mechanics and plumbers.  It bothers me to date as to why I have to pay $300 in labor to install a $20 part.  With our own resources, we’ve done everything we can to get material costs down, but it does not help if direct labor costs on the other end grow at rate faster than the decline in materials.  As of today, we sit in at an unemployment rate of nearly 10%.  That’s where I think the revolution needs to come from.  There’s opportunity in adversity…

Also, if only I could convince myself to take a pay cut…and then convince a few more people and then some more.  Who’s in?

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