Most management academics will adamantly defend outsourcing - a company that can source activities elsewhere for cheaper/better should do so. Hence the rash of manufacturing, engineering, IT activities that have been sourced to cheaper labor pools overseas. This is great for the consumer & the company, but terrible for the middle class worker.
Consider this: an Executive recently told me that his manufacturing facility in the US at non-union rates is $15/hr, facility in Tijuana, MX is $4.50/hr, and facility in China is $1.50/hr. He will shift more and more of his work to the China location.
But where does this leave the community? Those jobs will not be replaced and there are no other jobs to be retrained too -- there is simply nothing for these people to do. There is a whole class of worker that thrived in the 80's that is becoming irrelevant now; it seems like we are on an inevitable march to the current Russian society, sharply divided by the have/have nots.
I don't have the answer, but I'm sure we are going to see more and more protectionism. The American dream is getting increasingly difficult to attain as both blue/white collar jobs are unavailable for the American worker. I think you will see an increasing number of tax credits, subsidies, etc to create jobs, maybe even artificially, to sustain communities at home -- what's good for the consumer is proving to be terrible for the American societal fabric.
Aveek Guha, President, www.mbadaycamp.com
Consider this: an Executive recently told me that his manufacturing facility in the US at non-union rates is $15/hr, facility in Tijuana, MX is $4.50/hr, and facility in China is $1.50/hr. He will shift more and more of his work to the China location.
But where does this leave the community? Those jobs will not be replaced and there are no other jobs to be retrained too -- there is simply nothing for these people to do. There is a whole class of worker that thrived in the 80's that is becoming irrelevant now; it seems like we are on an inevitable march to the current Russian society, sharply divided by the have/have nots.
I don't have the answer, but I'm sure we are going to see more and more protectionism. The American dream is getting increasingly difficult to attain as both blue/white collar jobs are unavailable for the American worker. I think you will see an increasing number of tax credits, subsidies, etc to create jobs, maybe even artificially, to sustain communities at home -- what's good for the consumer is proving to be terrible for the American societal fabric.
Aveek Guha, President, www.mbadaycamp.com
President, www.mbadaycamp.com
