In the past one of the buzzwords was “outsourcing” but in the present a big question has emerged – Will manufacturing jobs return to USA? For decades many companies have outsourced a lot of jobs to industrialized countries to a significantly lower wage with purpose to minimize cost and thus be more cost competitive. A study by the “Boston Consulting group” argues that this subject has turned 360 degrees. In the industrialized countries there has been changes in wages, currency values, supply-chain issues, productivity that have huge impact on companies competitive advantage. Do we relate to China and afterward Brazil then China’s utility costs had risen 15 % in the year 2010-2011. In Brazil the manufacturing of electric power has been estimated to be more expensive than much of Western Europe. Due to the increase this is some of the reasons why many companies choose to insource jobs back to USA, but a big question remains: Are Americans capable to do the more complex jobs?
Beside the difference in wages that an American earns 7.4 times more than a Chinese worker are there also other factors in play. Despite the fact that China is an industrialized country is the productivity much lower compared to USA. It has also impact on the flexibility of the American workforce. Insourcing of jobs back to America means it will require more from Americans than before; actually a lot of manufacturing jobs require a tech degree, which means the modern manufacturing jobs are more complex. Normally many students pick a great job after they graduated high school that is all gone! The solution of this worker shortage has become education and abilities. A newspaper called “The Globe and Mail”, mentions that the education system in USA has fallen behind in recent years; “Education report card ranked the United States 11th out of 16 countries – Canada, by contrast, ranked second”. Due to education, President Obama identifies education as a foundation to USA’s competitiveness.
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