One of the biggest problems people and forecasters make is to extrapolate from current trends into the future.
But trends change. Consider textile manufacturing, once a staple in the U.S. Northeast and U.S. Southeast.
Rising costs have made it more expensive to spin yarn in China than in the United States, said Brian Hamilton, a 2012 doctoral graduate of North Carolina State University's College of Textiles, who wrote his Ph.D. dissertation on the global textile industry.
He found that in 2003, a kilogram of yarn spun in the U.S. cost $2.86 to produce, while it cost $2.76 to produce a kilogram in China. By 2010, however, it cost $3.45 to produce a kilogram in the U.S. and the cost in China had jumped to $4.13 per kilogram. U.S. production costs were lower than Turkey, Korea and Brazil.
Perhaps you have heard the phrase "and the last shall be first." Sometimes it happens in business.
Saturday, December 21, 2013
Cheaper to Manufacture in U.S. Than China, Firms Find

Subscribe to:
Post Comments (Atom)
Will AI Enhace, Degrade or Have No Impact on Human Creativity? Yes, Yes and Yes
One reason we seemingly will continue debating whether use of artificial intelligence enhances, degrades or has indeterminate impact on huma...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
No comments:
Post a Comment