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2nd Boeing 787 production line in South Carolina?
by spreadsheet

This move may be of some pretty dramatic import, and I suppose I could raise at least a coupla dozen questions. Here are a few.

1. We're going to be finding out whether or not $14hr people can be as productive as $28hr people. Considering our "flat world", do we Americans really hope that Boeing can pull this off? For if even the manufacturing of the world's highest-tech jetliner can be performed as well by half-priced labor, where's our bottom? What's our American upside? What's to prevent Boeing from having $1hr Chinese labor have a go at this?

2. IF a non-unionized red state can perform this work more efficiently than a unionized blue state, how do we account for the federal tax-flow disparity between these two states? How come the blue one is a net contributor and the red one a net taker?

3. How will the market respond, when they're offered products from these two remarkably different sources? For the same price, you can choose a 787 manufactured in the traditional home of aeronautics, or one built in a cheap labor red state?

And as an aside, rather than a question; This looks to be a risky move on Boeing's part. On the one hand, they may be banking on some measure of "competition" between these two assembly sites. And no doubt, they'll bank on using the cheap laborers to leverage the union laborers. But...one thing they can't control - try as they might - is the inevitable "spirit of competition" that will drive the one site to badmouth the other site's product. And...that won't serve Boeing well in the marketplace.

Re: 2nd Boeing 787 production line in South Carolina?
by itspattee
Will they charge less for the SC built 787?
Good question pattee.
by spreadsheet
Who knows? I'm sure they don't intend to. But, this move will probably drive down prices across the board. And again...we'd have to ask ourselves - red vs. blue partisanship aside - would that be a good thing for America's economy?
Re: 2nd Boeing 787 production line in South Carolina?
by RIP

Good move for Boeing. Beats the heck out of opening the plant in China; gives South Carolina, one of the poorer states, a Company that can contribute to the state’s tax coffers; offers attractive job opportunities and training to its residents (and others) and minimizes its chances of being paralyzed by a bunch of overpaid semi-skilled and skilled workers.

Oh, don’t know the last time you were in China, but you’ll be pushed to get a bowl of noodles for a buck; aw, the good ol’ days. One thing I find, particularly when reading uninformed comments about $1.00 per hour labor in China, is that many Americans are pretty naïve when it comes to world affairs; you epitomize that ignorance. They’ve actually priced themselves out of being an attractive work force that I can count on for some of our global projects. The demand in China for skilled labor, and other positions, is significant and the companies are having to pay according to supply and demand; a little capatilistic wouldn't you say? I won’t bore you with what the higher skilled craftsmen and young professional are making, not to mention the political (one party) influential and their Wall Street size greed.

Have a good posting day.

RIP

RIP

Yo RIP, I'm down with your response, although
by spreadsheet

I confess to being a little taken aback by your "you epitomize that ignorance" angle. For of course, I'm more than willing to cop to epitomizing all sorts of ignorance...but as to our economic/labor position vis a vis China, my mbtu will suggest to you, that I'm under no "conventional allusions".

I absolutely DO understand the politico-economic storm clouds on the Chinese horizon, and I'm absolutely NOT one of those who's convinced that the Chinese economy will eventually subsume us.

In that vein though, my question remains. IF (perhaps) the value of erstwhile highly skilled, technical, American, "family wage" labor can be halved in this apparent fell swoop, IS that to our American economic advantage? OR....should it be setting off some big-assed alarm bells? And....is THE answer to this apparent problem, that we should all prepare ourselves to labor for considerably less?

Re: Yo RIP, I'm down with your response, although
by MaryAnne
I am not sure what the pay is in China,I do know a family member went there last year on a fact finding mission for his company and 10 people had a full course meal with drinks and all the works for $100. Try and do that in this country.That is ten bucks a piece.
Re: Yo RIP, I'm down with your response, although
by RIP

Your family member either lied to you, or is full of short, or was at the Marriott hotel in the business center eating and drinking the complimentary spread, or was way out in the boondocks sucking rice and goat, washing it down with home-made rice wine but certainly not in any reasonable sized city. Ask him to show you his expense account.........

Have a good posting day.

RIP

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