Where the middle class manufacturing jobs go?
This NY times article is a great example of why it’s so hard to create middle-class jobs in the U.S. now. From personal experience I can confirm all the point made in this article with respect to electronics manufacturing.
A few years a go we were building a new phone and a special base station for it at Microsoft. We designed most of the electrical and mechanical parts in Taiwan because that was were the support network of vendors and designers existed around you. If you wanted a new PCB board re-designed and manufactured it would be ready for you within hours. That would have taken a week in US. In Xiamen (just across the water from Taiwan on the mainland) we designed and built the special base station for the phone. When we wanted to select cables and connectors we just called the sales rep from the neighboring factory and he was in our meeting room within 30 min. We didn’t like what they had and we called another one he too was there within 30 min. With samples and designs in hand. Whatever we wanted they could manufacture within a day. It was pretty incredible.
Also the quality of craftsmanship was very high. People took care of producing the PCB boards and plastic phone enclosures we had ordered. The vendor network had all the latest prototyping and design equipment you could think of. There was no reason to get out of Taiwan or south of China for anything. They would beat any one on price, flexibility, and quick turnaround.
There is zero chance you can bring that echo system back to US or western world. There is never ending supply of cheap, qualified and trained manufacturing workers coming from inland China.
Now lets continue our debates about same sex marriage, abortion and border guards. Or Tibo, or whatever the hell his name is.
