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True enough. Point is USA is competitive in chemical/petrochemical industry in spite of it's disadvantages in labor cost and manufacturing culture because it's got a big advantage from a supply chain standpoint.
True enough. Point is USA is competitive in chemical/petrochemical industry in spite of it's disadvantages in labor cost and manufacturing culture because it's got a big advantage from a supply chain standpoint.
It also has the largest talent pool, as well as American firms having the best access to cheap capital. But as mentioned the cheap/consistent utilities and a strong chemical industry that allows for a robust local supply chain that also has the benefit of reducing the transportation costs is also a major boon.
Culture wise I strongly disagree that American technicians are any less productive than their Asian counterparts. Almost everyone I have ever had the pleasure of working with has been competent, well motivated, and had a good ear for equipment. Proof of the manufacturing excellence that you can still find in America can be found in the US auto industry. In the 70s/80s they were getting their butts kicked by Japanese manufactures. Eventually these Japanese firms started to also build their own plants in the US. After an initial struggle bus period, the American plants that these Japanese automakers started building became extremely efficient operations, and the US companies also began to adopt Japanese principles like LEAN/just in time manufacturing and 6 sigma from the electronics industry. Now both Japanese and American owned factories in the US can build vehicles that are cost completive with comparable variation/reliability.
A semiconductor example of American manufacturing excellence from the 1980-2000s was Micron. They were MUCH smaller than their Japanese/Korean competitors had worse technology, and didn't have the backing of large Keiretsu/Chaebol/government investments to prop them up. Through well optimized manufacturing/buying up other failing American firms on the cheap they were able to outcompete the Japanese on cost, and survive the Korean DRAM tidal wave. To follow it up little Micron ended up buying the bankrupting japanese DRAM industry on the cheap and was able to scale to the global operation they now operate in an effort to compete with Samsung/SK.
It also has the largest talent pool, as well as American firms having the best access to cheap capital. But as mentioned the cheap/consistent utilities and a strong chemical industry that allows for a robust local supply chain that also has the benefit of reducing the transportation costs is also a major boon.
Culture wise I strongly disagree that American technicians are any less productive than their Asian counterparts. Almost everyone I have ever had the pleasure of working with has been competent, well motivated, and had a good ear for equipment. Proof of the manufacturing excellence that you can still find in America can be found in the US auto industry. In the 70s/80s they were getting their butts kicked by Japanese manufactures. Eventually these Japanese firms started to also build their own plants in the US. After an initial struggle bus period, the American plants that these Japanese automakers started building became extremely efficient operations, and the US companies also began to adopt Japanese principles like LEAN/just in time manufacturing and 6 sigma from the electronics industry. Now both Japanese and American owned factories in the US can build vehicles that are cost completive and comparable variation/reliability.
Throughout the years I bought Ford Taurus, Dodge Caravan, and Chevy Traverse.
Everytime I thought those "strange" engineers who designed my cars, those parts manufactures who provided "not-so-great" components in my cars, and those "not-so-normal" workers who assembled my cars should have retired or improved.
Throughout the years I bought Ford Taurus, Dodge Caravan, and Chevy Traverse.
Everytime I thought those "strange" engineers who designed my cars, those parts manufactures who provided "not-so-great" components in my cars, and those "not-so-normal" workers who assembled my cars should have retired or improved.
First I think perspective is necessary. The gap from BIC to WIC has narrowed a ton over the past 40 years. There was also the issue of those old American cars costing far more than those superior Japanese equivalents. These days the price differential between say an Equinox or Escape to a RAV 4 is smaller (and even in the favor of GM). Second there are also areas where American cars are actually doing very well for reliability. The funniest example is Buick which seems like it has been doing great when it comes to JD Power awards for reliability and even the odd quality awards, quite the comeback story given how ugly things got for GM not all that long ago. My final piece of evidence would be Japanese cars built in the US. The biggest auto factory in the US if memory serves is Toyota's plant in IL, and the cars they produce there are to the same standards and price as the cars they make across the rest of their factory network. Same deal with my dad's old Acura, the thing was built in Canada and trucked on for more than a decade without a single issue I can remember.
First I think perspective is necessary. The gap from BIC to WIC has narrowed a ton over the past 40 years. There was also the issue of those old American costing far more than their Japanese equivalents. These days the price differential between say an Equinox or Escape to a RAV 4 is smaller (and even in the favor of GM). Second there are also areas where American cars are actually doing very well for reliability. The funniest example is Buick which seems like it has been doing great when it comes to JD Power awards for reliability and even the odd quality awards, quite the comeback story given how ugly things got for GM not all that long ago. My final piece of evidence would be Japanese cars built in the US. The biggest auto factory in the US if memory serves is Toyota's plant in IL, and the cars they produce there are to the same standards and price as the cars they make across the rest of their factory network. Same deal with my dad's old Acura, the thing was built in Canada and trucked on for more than a decade without a single issue I can remember.
It also has the largest talent pool, as well as American firms having the best access to cheap capital. But as mentioned the cheap/consistent utilities and a strong chemical industry that allows for a robust local supply chain that also has the benefit of reducing the transportation costs is also a major boon.
Culture wise I strongly disagree that American technicians are any less productive than their Asian counterparts. Almost everyone I have ever had the pleasure of working with has been competent, well motivated, and had a good ear for equipment. Proof of the manufacturing excellence that you can still find in America can be found in the US auto industry. In the 70s/80s they were getting their butts kicked by Japanese manufactures. Eventually these Japanese firms started to also build their own plants in the US. After an initial struggle bus period, the American plants that these Japanese automakers started building became extremely efficient operations, and the US companies also began to adopt Japanese principles like LEAN/just in time manufacturing and 6 sigma from the electronics industry. Now both Japanese and American owned factories in the US can build vehicles that are cost completive with comparable variation/reliability.
A semiconductor example of American manufacturing excellence from the 1980-2000s was Micron. They were MUCH smaller than their Japanese/Korean competitors had worse technology, and didn't have the backing of large Keiretsu/Chaebol/government investments to prop them up. Through well optimized manufacturing/buying up other failing American firms on the cheap they were able to outcompete the Japanese on cost, and survive the Korean DRAM tidal wave. To follow it up little Micron ended up buying the bankrupting japanese DRAM industry on the cheap and was able to scale to the global operation they now operate in an effort to compete with Samsung/SK.
Not to be that guy, but culturally there is a big difference between manufacturing engineers and technicians of past generations and the current generation and the older generation is greying out of the workforce. Younger engineers would rather work in software than manufacturing and I don't blame them. More money, work from home, safer, easier lifestyle. The unskilled labor pool can also make more working warehouse fulfillment center then they could at a manufacturing plant as well.
I won't say Americans don't work as hard, but have a better opportunity set. Plenty of hard workers out there, but they can be better rewarded for their hard work in other industries.
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