Posted by RodInNS on January 18, 2008 at 05:12:35 from (24.224.246.156):
In Reply to: Re: CNH Global posted by The Dukester on January 17, 2008 at 17:37:37:
First off, as it relates to Agricultural tractors, most of the manufacturing is done in the 'west' mostly in a union setting. This is in the US, UK, western Europe for the most part. IT's true that they do source stuff from around the globe, but I'd suggest that most of their maunfacturing is done in plants that hav a rather high labor cost. I don't believe that these companies are going to China to get rid of high labor costs. They're going there to get rid of HEADACES. A union in and of itself is a headache to a company. There's no regs in China. They do what they want to there. There's very little if any environmental regulation there either... another VERY BIG reason not to operate in a western developed society. I don't believe that labor is the biggest factor in these decisions anymore, but it is still a factor. I'd suggest that if they had to conform the the same regulatory structure in China that they do here, the manufacturing would largely be done here again... and I'm not so sure that it won't when the cost of transportation catches up once oil really starts getting expensive.
It strikes me as odd that western Europe has been able to maintain much of it's manufacturing sector in spite of having much more stringent labor laws than we've traditionally had here. Mabey THEY figured out something that we haven't? I don't want to hear that it's all subsidies and tariffs either...
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