Comments on: What can we do to again make the U.S. the major leader in capital goods? http://constructionequipment1.com/used-construction-equipment/what-can-we-do-to-again-make-the-us-the-major-leader-in-capital-goods Answers to your Construction Equipment Queries Sat, 31 Jul 2010 23:43:14 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Meilien http://constructionequipment1.com/used-construction-equipment/what-can-we-do-to-again-make-the-us-the-major-leader-in-capital-goods/comment-page-1#comment-1207 Meilien Sun, 27 Dec 2009 08:20:59 +0000 http://constructionequipment1.com/used-construction-equipment/what-can-we-do-to-again-make-the-us-the-major-leader-in-capital-goods#comment-1207 Reduce manufacturing costs. One of the single largest costs faced by US manufacturers is the cost of staff. This cost can largely be broken down into four parts 1) Wage/Salary 2) State and federal taxes 3) Health care and benefits 4) Health and safety In order to reduce the cost of manufacturing a chunk needs to be taken out of as many of these as possible. You can pay your employees less, the state can tax their wages less, you can reduce their health care and pensions package, or you can cut back on office comforts and safety by reducing things such as safety guard or increasing production speeds. I'm not certain that most Americans would agree to any of these things. If Obama gets his way with Obama-care cost 3 will be slashed. Companies will be able to reduce their health care costs by passing it on to the state. This could positionally save them thousands of dollars per staff member. You could also employee more immigrants. Illegals are cheaper than legals, but generally speaking any foreign national who accepts lower wages than a citizen will save a manufacturing company money. you could also try cutting the quality of your product. People get what they pay for. Over all, I don't think that it will be possible for America to regain it's position.<br><b>References : </b><br> Reduce manufacturing costs.

One of the single largest costs faced by US manufacturers is the cost of staff. This cost can largely be broken down into four parts

1) Wage/Salary
2) State and federal taxes
3) Health care and benefits
4) Health and safety

In order to reduce the cost of manufacturing a chunk needs to be taken out of as many of these as possible. You can pay your employees less, the state can tax their wages less, you can reduce their health care and pensions package, or you can cut back on office comforts and safety by reducing things such as safety guard or increasing production speeds.

I’m not certain that most Americans would agree to any of these things.

If Obama gets his way with Obama-care cost 3 will be slashed. Companies will be able to reduce their health care costs by passing it on to the state. This could positionally save them thousands of dollars per staff member.

You could also employee more immigrants. Illegals are cheaper than legals, but generally speaking any foreign national who accepts lower wages than a citizen will save a manufacturing company money.

you could also try cutting the quality of your product. People get what they pay for.

Over all, I don’t think that it will be possible for America to regain it’s position.
References :

]]> By: Jeff C http://constructionequipment1.com/used-construction-equipment/what-can-we-do-to-again-make-the-us-the-major-leader-in-capital-goods/comment-page-1#comment-1206 Jeff C Sun, 27 Dec 2009 07:48:59 +0000 http://constructionequipment1.com/used-construction-equipment/what-can-we-do-to-again-make-the-us-the-major-leader-in-capital-goods#comment-1206 Productivity. This comes about through better technology and more productive manufacturing methods. Everybody things cheap overseas labor saves money but it doesn't. If you look up productivity ratios (an economics statistic that determines the value of good produced per worker) the U.S. use to be one of the highest over many decades. Slave labor is cheap but if workers aren't motivated and don't have the right tools to be productive it's not going to win out in the market. The West has gotten a bit lazy over time and cheaped out in investing in new technology and better processes. The rest of the world is starting to catch up. I grew up in a factory town and they hated to update the factories with newer technologies, they just kept the 50's technology working well past it's expirey date. It became too expensive to operate so each plant just shut down one by one until the town had no manufacturing base left. Research, development, and a constant cycle of upgrades will keep a nations manufacturing base on top.<br><b>References : </b><br>http://en.wikipedia.org/wiki/Productivity Productivity. This comes about through better technology and more productive manufacturing methods. Everybody things cheap overseas labor saves money but it doesn’t. If you look up productivity ratios (an economics statistic that determines the value of good produced per worker) the U.S. use to be one of the highest over many decades. Slave labor is cheap but if workers aren’t motivated and don’t have the right tools to be productive it’s not going to win out in the market.

The West has gotten a bit lazy over time and cheaped out in investing in new technology and better processes. The rest of the world is starting to catch up. I grew up in a factory town and they hated to update the factories with newer technologies, they just kept the 50’s technology working well past it’s expirey date. It became too expensive to operate so each plant just shut down one by one until the town had no manufacturing base left. Research, development, and a constant cycle of upgrades will keep a nations manufacturing base on top.
References :
http://en.wikipedia.org/wiki/Productivity

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