Lower wages and costs to develop and or produce a product, no unions. No environmentalist. Lower or no fees or permits. Not a litigious environment.
What else, the list goes on and on as to why American companies flee the usa.
This is a true statement that it is/was cheaper to have product build overseas. I was part of that process with my old company. I spent 3 years in China moving their production as the labor rate was way cheaper. Yes it cost more money in the beginning as you are dealing with cost of poor quality, but it would turn around and the company is making good money as they start to loose their salary overhead in the US.
I lost my My job at G.E. appliance park a long time ago because they shipped the manufacturing down to mexico. Guess what G.E. has been doing recently...bringing that manufacturing back to same place they left. Why? Because they see first hand the quality of product goes down hill and in the end they loose. Also one thing I don't understand is if companies keep moving manufacturing out of the country and we are all left with no jobs, who will have the money to buy the product?
I have left my old job as they felt they did not need me anymore and found myself getting a job at the company I spent 3 years with moving production to. It is here in the states (CA) and I only had to make a small adjustment in my travel routine. Only took me 6 weeks to get back employed..
So the company that I now work for is the company that builds all the product for those companies that cannot. They come up with the idea and farm it out to us to build. Our company is all over the world and one thing that I am finding out while being here so far, is that companies are coming back to the US as the labor rate and cost of doing business overseas is on the raise. Our plant does some work for some pretty high up there companies and they are awarding us with more future products to be built here rather than Asia where it could be done a lot cheaper still, but they release in the long run they can save by paying more for labor, but driving the COPQ down.