Posted by Spook on February 11, 2016 at 08:21:42 from (104.63.94.65):
In Reply to: Jobs going to Mexico? posted by Spook on February 11, 2016 at 07:55:44:
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With all due respect, I think you are wrong. The jobs are moving due to wages. Period. These days, the things like EPA are pretty much worldwide. Taxes? the margin they make in Mexico will more than cover taxes. You think running a plant in Mexico and importing the products here will result in less bureaucracy? I reject the idea that Americans won't work.
Labor, in the automotive industry is less than 10% of cost. But this is a business that makes a profit of less than 5%. If they can reduce labor cost, it all falls to the bottom line.
It all comes down to the trade treaties. As long as they can outsource to Mexico, they will do it. As long as it makes money for them. When they cannot ( unlikely ), make a profit doing so, they will build more plants here.
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