Cheap labor
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Started by wglassfo - June 2, 2021, 1:02 a.m.

You are all aware of cheap labor competing with our high labor costs

But NA hasn't exactly been asleep at the switch

We have been forced to become less dependent on labor

Today the labor cost for many wiggits is a smaller part of the end product

What we have done  is invest in automation

Just one example

My son produces stuff for many Co's

He gave us a front row seat to what he can do with robots programmed to do a specific task

He used second hand machines and parts from Canadian Tire and else where. He did not go looking for experienced people as he is the person with the knowledge and experience. The heart of his assembly is the soft ware that tells the robot which part is needed when and where.  The robot even takes raw material and produces a finished product. Of coarse the process uses many robots, but it happens. I saw the process. I saw the finished product I can't say more but the need to replace labor with technology has him in a position to compete with labor intensive production. If you knew what he does you would see his product all over the world. He does not look for business. Business comes to him. Took a long time, many hrs of trial and error, dollars spent on trial and error, but today he can produce for less.

So you see our manufacturing industry will not take a back seat to chinese production. Give us a few yrs and watch what happens. Profit is a great motivator.  People like my son all over the country are using technology to produce wiggits for less than imported, labor intensive goods. China has a population that needs jobs. So their model is to keep everybody employed. We don't have that luxury of cheap labor. 

So: we found a different production model

What we really need is more domestic chip manufacturing in NA. I think that will come, given some time.

Re: Cheap labor
By metmike - June 2, 2021, 2:24 a.m.
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I hope that you're correct about this Wayne!

By TimNew - June 2, 2021, 8:20 a.m.
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Automation is the future, and it will leave us with a lot of painful choices.  The minimum wage debate only hastens the advance.   But before long,  unskilled labor will be looking at the 7.25/hour minimum wage as "the good old days".

By metmike - June 2, 2021, 10:14 a.m.
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This makes total sense Tim!

Machines don't get sick and don't need benefits/health insurance. You  just need power and maintainance. 

By metmike - June 2, 2021, 10:25 a.m.
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By metmike - June 2, 2021, 10:32 a.m.
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12 jobs that robots (AI) will replace in the future, and 12 that won’t

Last updated on March 25, 2021

Re: Cheap labor
By wglassfo - June 2, 2021, 10:32 a.m.
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I think the labor issue will become political

Will some on the left demand high taxes to pay for UBI

Or will the unskilled be left to live on minimum social assistance

The productive will be out voted by those who are unskilled or don't work for what ever reason

High taxes can kill the profit motivator

My son finds niche markets with high selling price Not all automation is a niche market re: auto production

If our political model is high taxes on the productive

I am not sure automation can over come high taxes, for most industries

Example: My son may build a desk and chairs for x dollars using robots from raw material to finished product [I used a market that is not a niche market for security reasons]

But if he is subject to high taxes, then his and other production models won't work

By TimNew - June 2, 2021, 11:02 a.m.
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Makes me sick to day this,  but as automation advances,  and it will,  we'll be left between a choice of some form of socialism or people starving and/or rioting in the streets leaving us with a massive level of non-productive members of society.    That is not likely to end well.  Most people need to feel productive to be good citizens.

By metmike - June 2, 2021, 12:48 p.m.
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This is an astute assessment......... forward looking high probability potential reality.

By 7475 - June 3, 2021, 6:40 a.m.
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Thats our future, Tim. The globalists might just be working on this premise and they would have good reason to push their agenda.

 We have become so damned efficient at goods production and ever more beyond that many people will not be able to secure jobs to support themselves and a "guaranteed income" (socialism of sorts) will become an option for governments to keep its population satisfied. Who will qualify? Who will want to work? Those kind of programs ,of course,will be paid for thru taxation. The working elite,inovators,and politicians will be rewarded with power,control and their sibling,wealth.

 Get ready