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Microcap & Penny Stocks : Rat dog micro-cap picks...
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To: Bucky Katt who wrote (12098)5/30/2003 2:05:03 PM
From: christopher  Read Replies (1) of 48461
 
Hi William,
Well there are other sides of the coin to consider here...Only product lines that are labor intensive seem to make the move out of the US...I currently work for a large company that manufactures plastic components for the electrical industry...Our cost to produce is 80+% raw materials, <20% goes to labor and overhead...the reason the ratio is such is the last several years we've automated many of our processes with robotics (made in the USA) to take the labor out of the mix. Our innovations have turned this from a 180 person facility to 350 in just a couple of years...one product line was moved OUT of Mexico last year to our US plant with a stipulation we automate it to take the labor out, which we've done by reducing labor in that product line by over 50%...quality complaints on that product line have been reduced by 20% since moving it to the US...another point, one of our sister plants which makes those huge heaters you see hanging all over large warehouses had 3 heater lines moved from the US to Mexico...two years later 2 of those 3 heater lines are back in the US plant...why?...a huge upsurge in quality complaints once the very reputable product line was moved to Mexico...I'm sure corporate could move our operation overseas and produce the product line at a lower rate but we've made that proposition so up front expensive with such a long payback I don't expect it to happen...you're right though, some industries are doomed with the cheap labor...but there are little reported activities taking place in US manufacturing that are keeping several jobs at home...btw, I'm playing all micro-caps these last few years and doing fairly well, I get a lot of info off this thread, thanks for your contributions...Chris
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