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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: croesus1111 who wrote (40697)	3/24/2005 8:10:39 AM
From: CommanderCricket	Read Replies (2) of 206223

croesus, Regarding your comment - "The only way the US will get those jobs back is if US labor costs become cheaper than those in China or India." Here's something to consider. My wife who works as an operations research analyst for a top logisitics company has started modeling for two fortune 5 companies. In very simplistic terms she is modeling "transportation costs vs labor costs." The companies she's consulting for beleive as energy becomes more expensive, more manufacturing must be set up closer to the end customer. This is especiallly true for durable goods. She's also ran a model last fall for a top EMS provider looking at bringing their server business back from China to the US or Canada. As a side note, when I worked in electronics, there were several times we shut customers down because our stuff was sitting on a boat off Long Beach waiting to be unloaded. Any profit or labor savings from china were quickly gone as our contracts had delivery penalties. Higher energy costs will change how we do things. Michael

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