I have written a lot about the tariffs and what it will mean to us mere peasants…..but Donny has said that it will revive the US manufacturing sector….is that really the case?
If this promise is true….how will it revive that sector?
There are some doubting Thomas’…..
The Trump administration’s tariff scheme appears less and less likely to bring manufacturing jobs back to U.S. shores.
Businesses across the country are crunching the numbers and realizing that, despite Donald Trump’s insistence, they can’t balance out his tariff hikes across the supply chain.
“Some manufacturers who had plans to open factories in the country say the new duties are only adding to the significant obstacles they already faced,” Bloomberg reported Friday.
That’s because the supply chain to produce those goods in the United States simply isn’t there, requiring companies to import raw materials and factory equipment—which Trump’s tariffs have made unaffordable—from abroad.
And Trump’s unpredictable approach to announcing and enacting or even retracting his tariffs has added confusion and significant volatility to the market, making businesses less likely to invest in large, long-term projects such as factory development.
Nora Orozco, the owner of footwear company Evolutions Brands, wants to open a Texas factory that would create 200 jobs. But the nitty-gritty of Trump’s so-called “manufacturing renaissance” just doesn’t work, according to the small-business owner.
“I like the idea of onshoring, but this makes it impossible for us,” Orozco told Bloomberg.
Reinvigorating American manufacturing has been a tall order for both political parties since the country offshored and automated the bulk of those jobs decades ago. But 2022 did see a spike in job announcements for reshored manufacturing gigs, according to the Reshoring Initiative, a U.S. manufacturing advocacy nonprofit.
https://newrepublic.com/post/195070/donald-trump-tariffs-manufacturers-opening-factories
We are also told that it may be a long haul to return the manufacturing sector to its once proud glory.
If so then why do we have open manufacturing jobs?
President Trump has been upending the global economy in the name of bringing manufacturing back. President Joe Biden signed into law massive investments aimed at doing something similar. The American manufacturing sector is reviving after decades of decay.
But there’s something a bit weird undercutting this movement to reshore factory jobs: American manufacturers say they are struggling to fill the jobs they already have.
According to data from the Bureau of Labor Statistics, there are nearly half a million open manufacturing jobs right now.
…
One big reason manufacturers can’t fill these jobs overnight is because they require workers to have particular skills. And it’s not just skills needed to work on assembly lines. Only around 2 in 5 manufacturing jobs are directly involved in making stuff. Manufacturers also employ people to do research and development, engineering, design, finance, sales, marketing and so on.
The late Steve Jobs explained to Obama why he and others have gone overseas….
The famously blunt Apple boss wasn’t shy about shooting down the president’s musings. “Those jobs aren’t coming back,” he replied.
The reason why wasn’t just lower costs in countries like China. “Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that ‘Made in the U.S.A.’ is no longer a viable option for most Apple products,” wrote the Times, summing up discussions.
To illustrate, the paper offered a story shared by a former Apple executive about a last-minute design change to the iPhone’s screen that forced a change in the manufacturing process at the Chinese factory where the phones were being assembled.
Around midnight, a foreman “roused 8,000 workers inside the company’s dormitories, according to the executive. Each employee was given a biscuit and a cup of tea, guided to a workstation and within half an hour started a 12-hour shift fitting glass screens into beveled frames. Within 96 hours, the plant was producing more than 10,000 iPhones a day,” the article reveals.
“The speed and flexibility is breathtaking,” the executive told the Times. “There’s no American plant that can match that.”
Will those ‘well paying’ jobs ever return….and if they do will Americans rush to snap them up?
But I am sure that there are some out there that feel confident that Donny’s plan will do the thing that he has promised.
Sadly I am not one of them.
But it you feel strongly that this is the proper way to go about this situation then by all means explain why you feel that way.
We await the answers.
I Read, I Write, You Know
“lego ergo scribo”
So what happens to the trillion$ of dollars investmend by Saudi and Qatar ? Is that money or new infracture we receive ?
Does not matter the money was, it looks like, to promote Trump and his business concerns. chuq
I would be fascinated with a report on how the Trump Empire benefits from these world events. I can’t confirm or deny such may be the case as I cannot find any sites to register and explore the suggested possibilities. Are world nation leaders and world economic giants mere trinkets in Trumps desk drawer ?
For one the numerous Trump Towers….and a golf course all negotiated by his sons for the Trump Organization….all was mentioned in the ME post of yesterday I believe chuq
I apologize Carl….the reports will be in tomorrow’s post not yesterday’s….just want to keep it honest here. chuq
The conditions in those Chinese factories are close enough to slave labour. They would never be tolerated in the West, and rightly so. The mega-rich Apple boss boasting about exploiting Chinese workers is disgraceful and shameful.
Best wishes, Pete.
Jobs was always a money hungry prick and those words prove just how much. chuq
Here’s the fact of the matter ….The cost of American Labor has long since made it an insane idea to manufacture things here —on top of that, if an American manufacturing firm has already built an expensive factory overseas, they are not going to easily be convinced to come back over here and build another one for the unions to destroy with their greed and laziness. And I can’t say as I blame them!
Blaming labor is wrong. I have a companion piece a little later. chuq
You have very valid points up there. The reason we cannot compete is because workers in these countries endure conditions we would never tolerate here. Many of them live in company owned dormitories under conditions that are basically like living in a prison, with working days running 12 – 16 hours, 6 or even 7 days a week. In many of these countries the areas around the factories, mining facilities, etc. are toxic wastelands. The air is so thick with pollution that I heard it claimed that in some cities in China, India, etc. just breathing the air is the equivalent of smoking two packs of cigarettes a day. And all of that so we can shave a few bucks off the price of a pair of shoes or a radio.
I believe Peking was under air warnings when the Olympics were there. chuq