What is the real reason they don't want to set up in the US?
Labor costs. That's the biggest reason I believe.
India is one of our biggest pharmaceuticals suppliers.
The last numbers I saw on the wage difference between pharmaceutical employees in US vs India is something like 8-10x more than they make.
Also, jobs in textiles (clothes, shoes) where skill or education isn't really important, many of those people are making something like TWO DOLLARS A DAY.
That's not a typo. It's not two dollars an hour, but two dollars a day.
There was a big brouhaha just a couple years ago about (I think) Nike using child labor and basically slave labor to make their shoes.
And in (I think) Bangladesh, prisoners are forced to work making clothes and such, for nothing.
If people really knew who it was making all the crap we buy, they would be horrified. Or they would be if they aren't a sociopath, anyway.
That's what disgusts me so much about how our culture is so wasteful. The idiotic fashion influencers on social media have created a zombie army of fellow idiots devoted to fast fashion. Where they buy whatever cheap pieces of garbage influencers deem to be divine artwork, wear it a few times and trash it. You can't even donate it, really, because it falls apart after a wash or two.
That's why I don't mind paying $150 or more for a nice Irish wool sweater, handmade by a truly skilled person, and I can wear it for decades.
I have cashmere sweaters I bought in college 30 years ago (dear God, I am so old), that I still wear every winter. And they're as beautiful as they were then, because I chose simple, classic cuts, and I've only had to repair them a few times, due to little snags here and there. And I take the time and effort to repair them, instead of just tossing them and buying some hideously uncomfortable acrylic atrocity, because they're worth having them repaired.
Oh dear....I seem to have wandered up onto a soap box somehow. I'll get down now. Thank you so much for enduring my ramblings and rantings. Hope you have a lovely day. βοΈ
I completely agree on buying things of value that last a long time.
As for the labor and rates... There is no doubt it is cheap labor, but something seems fishy to me about it all. With automation and technology, I just don't think there are little Chinese people sitting on stools hand stitching Nikes. I picture a fully automated, mechanized system doing almost everything. Same with textiles. Lots of tech and automation. Maybe they have to lace the shoes by hand, I don't know.
As for pharmaceuticals, maybe Puerto Rico can become the pharmaceutical supplier we need. Cheap labor, American territory, close to home.
There seems to be little industry there except for massive corruption. Maybe that's why it wouldn't work. But from geography and labor rates, I would think there is a chance.
You'd be surprised to see how much human labor is required to make shoes and such.
You can go to YouTube and do a search for something along the lines of "How shoes are made" or something similar.
Puerto Rico, while being a territory and not a state, is still required to to obey wage laws, such as minimum wages. It wouldn't be any different than setting up manufacturing in one of our poor states, like Mississippi, Louisiana, Alabama, Arkansas, Kentucky etc...
I found this one that's supposedly shows people making Nike shoes. Not completely convinced on the validity of that, but shows even more human involvement in the process.
Labor costs. That's the biggest reason I believe.
India is one of our biggest pharmaceuticals suppliers.
The last numbers I saw on the wage difference between pharmaceutical employees in US vs India is something like 8-10x more than they make.
Also, jobs in textiles (clothes, shoes) where skill or education isn't really important, many of those people are making something like TWO DOLLARS A DAY.
That's not a typo. It's not two dollars an hour, but two dollars a day.
There was a big brouhaha just a couple years ago about (I think) Nike using child labor and basically slave labor to make their shoes.
And in (I think) Bangladesh, prisoners are forced to work making clothes and such, for nothing.
If people really knew who it was making all the crap we buy, they would be horrified. Or they would be if they aren't a sociopath, anyway.
That's what disgusts me so much about how our culture is so wasteful. The idiotic fashion influencers on social media have created a zombie army of fellow idiots devoted to fast fashion. Where they buy whatever cheap pieces of garbage influencers deem to be divine artwork, wear it a few times and trash it. You can't even donate it, really, because it falls apart after a wash or two.
That's why I don't mind paying $150 or more for a nice Irish wool sweater, handmade by a truly skilled person, and I can wear it for decades.
I have cashmere sweaters I bought in college 30 years ago (dear God, I am so old), that I still wear every winter. And they're as beautiful as they were then, because I chose simple, classic cuts, and I've only had to repair them a few times, due to little snags here and there. And I take the time and effort to repair them, instead of just tossing them and buying some hideously uncomfortable acrylic atrocity, because they're worth having them repaired.
Oh dear....I seem to have wandered up onto a soap box somehow. I'll get down now. Thank you so much for enduring my ramblings and rantings. Hope you have a lovely day. βοΈ
Nicely written!
I completely agree on buying things of value that last a long time.
As for the labor and rates... There is no doubt it is cheap labor, but something seems fishy to me about it all. With automation and technology, I just don't think there are little Chinese people sitting on stools hand stitching Nikes. I picture a fully automated, mechanized system doing almost everything. Same with textiles. Lots of tech and automation. Maybe they have to lace the shoes by hand, I don't know.
As for pharmaceuticals, maybe Puerto Rico can become the pharmaceutical supplier we need. Cheap labor, American territory, close to home.
There seems to be little industry there except for massive corruption. Maybe that's why it wouldn't work. But from geography and labor rates, I would think there is a chance.
I just went to check on Puerto Rico wages and incomes and found out that in 2021 they passed their own minimum wage laws.
The Federal minimum wage in the US is $7.25 an hour. Since last year, the minimum wage laws in Puerto Rico is $10.50 an hour
So it would cost more to set up manufacturing there than in most states.
I was pretty surprised to see that.
Thanks for that research. I find that surprising too.
There goes my grand plan. LOL
You'd be surprised to see how much human labor is required to make shoes and such.
You can go to YouTube and do a search for something along the lines of "How shoes are made" or something similar.
Puerto Rico, while being a territory and not a state, is still required to to obey wage laws, such as minimum wages. It wouldn't be any different than setting up manufacturing in one of our poor states, like Mississippi, Louisiana, Alabama, Arkansas, Kentucky etc...
I found this one that's supposedly shows people making Nike shoes. Not completely convinced on the validity of that, but shows even more human involvement in the process.
https://youtube.com/shorts/qdcRpY1QIYA?si=N0nSKqg3IrC1G216
I thought I'd save you some time and see if I could find a short video on how shoes are made.
It's not a comprehensive video by any means, but it shows how much human labor is involved, even with a huge amount of machinery.
https://youtu.be/D1eQZTsd3fg?si=CSE2IaKoRaJsf85r