Comment by parineum
10 hours ago
Something that I hadn't considered before I heard it being discussed by someone who studied the phenomenon of factory off shoring is that a huge factor in the off shoring has nothing to do with labor, it has everything to do with ramp up time.
Compare the build time between Tesla's battery factories in the US and China and consider how many batteries they can sell during the time difference.
Building a factory loses money until the factory starts making products. Good or bad, regulations that cost _time_ are the biggest issue. Labor costs matter but they affect the margins that can be somewhat compensated for by products not needing overseas shipping. A company, especially a new one, can go out of business in the years it takes to build a factory in the US.
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