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Lenovo Building Manufacturing Plant in North Carolina
An anonymous reader writes "One of the major themes of the ongoing presidential election in the United States has been the perceived need to bring product manufacturing back to the United States. A recent announcement from Lenovo is going to play to this point; the PC manufacturer said today that it's building a U.S. location in Whitsett, North Carolina. The new facility is small, with just over 100 people and is being built for a modest $2M, but Lenovo states that it's merely the beginning of a larger initiative."
It makes sense: their U.S. HQ is a stone's throw away in RTP.
Just a new line inside an existing facility. Still good news :)
K Man
WTF does RTP mean, in context with this story?
"Tongue tied and twisted, just an Earth bound misfit
Oddly enough, the most likely reason they're putting in a plant in the USA is...... (wait for it).... to sell into DOD. You get an instant +5 karma by manufacturing in the USA for contract win purposes.
I said no... but I missed and it came out yes.
..has our dollar really declined that much?
It is not so much the decline of the dollar, as the automation of manufacturing. As factories become more automated, the "labor" component of the cost goes down, and at some point is exceed by the transportation and inventory costs of off-shoring. At that point it becomes cost effective to "re-shore" the factory.
I have been inside factories in both China and the USA. Chinese factories bustle with people. American factories tend to be almost devoid of all lifeforms. Manufacturing is coming back to America, but manufacturing jobs are not.
American companies can not build here, but Chinese can. Just amazing how bad American leadership has become.
At this point, if the west really wants to acknowledge China's gov cold war and take it on, then we should start sending as many MBA's to China as humanly possible. Of course, the Chinese will probably realize it and simply put a bullet in each one of them and then charge the USA for it, while subsidizing and dumping the rest of the ammo on America's market.
I prefer the "u" in honour as it seems to be missing these days.
I'm typing this from a thinkpad x201, and have failed to see any issues. Design wise very little has changed on it since the owership changed.
Some people could consider it stagnation, but I consider it "don't fix what isn't broken"
It still has all the features nobody else is willing to do in a single package, like a quality nub, reading light, waterproof keyboard, etc.
The connectivity options are impressive, not only the usual wifi/ethernet/cellular but it even still comes with an in-built 56k modem.. on an i5 :)
Even if it's just for PR points, some domestic manufacturing employment is a good thing. The reason why isn't nice, it's not politically correct, but it's the facts:
Not everyone is intelligent enough for knowledge work.
In my opinion, if we continue the way we're going, we're going to spiral into a society with three classes -- business owners, knowledge workers and a huge swath of working poor. If everyone has to complete at least a masters' degree to secure a place in one of the top two classes, that completely ignores the other 75% of the IQ distribution.
Think about the way society was organized in the 50s through the 70s:
- Only the highly intelligent and/or well off went to college. They typically inherited a business, got a technical, science, engineering or other kind of knowledge job, or became academics. Each one of these outcomes guaranteed a stable job for life because that's what business ownership, academia or large corporate employment did back then. This is still the preferred path, minus the guarantees of course.
- For the high end of the medium-intelligence scale, there were plenty of paper-shuffling jobs in corporate environments. Remember that before computers, automation and email, large corporations had to employ thousands of file clerks, secretaries and layers of management that just routed paper reports around. Because US companies were doing so well, and things couldn't be outsourced and automated, a huge upper middle class thrived.
- For the low end of the medium-intelligence scale, there were millions of factory jobs. They were all simple, stand on a line for 8 hours and perform a single task or set of tasks. Because of unionization and a lack of global competition, even those jobs were stable and paid reasonable living wages. This was the bulk of the middle class, and I grew up in a Rust Belt city in the early 80s so I got to watch it all unravel live.
- The screwups, dropouts or just plain dumb people wound up doing menial labor. But even at that end of the scale, there was less downward pressure on those wages, so they were able to scrape by for the most part.
The problem is, in 2012, you can locate a factory anywhere, employ thousands of people for a fraction of the price that 100 would cost you, and pump out products just as quickly as before. All the secretaries and paper routers lost their jobs in the late 80s/early 90s automation and downsizing waves. So now, where do all those people who used to have solid incomes go? They either end up permanently unemployed, or go work menial jobs for just above minimum wage, no security and no benefits. So you have a huge class of working poor, working at Wal-Mart, as a home health care aide, or something else.
It's a really tough problem that might have a very bad ending in the next 40 years or so -- we need to find something for everyone to do and someone to employ them. Conservatives love to tout entrepreneurship as our savior, but do they really think a factory guy whose job was bolting the same two parts together for the last 20 years is going to be a successful business owner? Thinking like that will mean you have a class of bankrupt working poor instead of just working poor as all their little ventures fail.
So yes, I hope manufacturing comes back. And I hope it can be something that someone can build an entire career on, not just a string of $10/hr temp jobs.