Comment by rrrrrrrrrrrryan
12 days ago
> The labor wages themselves are a factor, but an increasingly minor factor in product costs.
Not disagree with your main points, but labor inputs are still very much a huge part of product costs, and often the biggest driver of where to build a new factory when a company is scaling up. Companies aim to build their new factories wherever there's a sufficient pool of cheap labor with the necessary skills.
> Companies aim to build their new factories wherever there's a sufficient pool of cheap labor with the necessary skills.
Of course, even where labor cost is truly inconsequential, you would still do that as all the correlations that come alongside cheap labor are still very attractive to manufacturing.