Of course it won’t. It would take years to move manufacturing to the USA. Building factories, hiring and training workers, none of that can happen over months. It’s also a huge expenditure for the business which, along with higher payroll costs, would be passed on to consumers. Costs are going to go up weather they move manufacturing here or not so why not take the path of least resistance and just pass on the tariff costs?
And they never were going to pay labor in America. Our world economic systems created this problem with the US at the head. Now that we are entering late stages of capitalism we want to cry about things being unfair… We have to rethink the whole world economy not just what the US is doing.
And it’s not just the assembly factories that are the problem. Why the hell would you create a factory here when your entire supply chain is going to be hit by tariffs anyway. Not only are you still having to increase prices, now you’re less competitive than offshore factories due to labor, input, and real estate costs. And why would you move supply chain factories here only for them to have to deal with both the above problems and retaliatory tariffs. The US market isn’t worth that for a whole lot of things.
I had a comment like this for aptera which is being built in the us but several of its most expensive components. Battery and the carbon fiber shell are built in asia and europe respectively. Seems to me they would be best off manufacturing in like ireland or something since it won’t make a big difference in how much they charge folks but would lower costs for selling around the world outside the us. Now given this is when high tarrifs are everywhere and of course day to day who knows what they will be. Still if I was a business the best long term would be stay out of the us the way I see it.
Also, there’s absolutely no indication that Americans want to be working at poverty wages in an assembly plant. None of this makes sense even if it “worked.”
Also, why invest in moving your entire manufacturing side to the US when you can be reasonably sure that the tariff fad will be over in 4 years at minimum, 10 years max?
But guuuuuys, everybody’s supposed to lie and make less money and become slaves :( if you don’t do that, what’s this last 50 years of political gamesmanship and duplicity and propaganda been for??
It’s also a huge expenditure for the business which, along with higher payroll costs, would be passed on to consumers.
Margins on Matel products have historically been high. Strictly speaking, they could still function as a business if they insourced the manufacturing and materials, paid prevailing wage rates, and assumed their workers would also be their clients. But the impact on profits would be enormous. The degree to which Matel could produce surplus waste and assume administrative overhead would be crimped significantly. What incentive do C-levels and board members have to make this kind of change?
Costs are going to go up weather they move manufacturing here or not so why not take the path of least resistance and just pass on the tariff costs?
The US isn’t the only buyer of Matel products. Why bother insourcing to appease the current US president when they can pivot their sales to international consumer markets instead? Maybe they need to lower their prices to sell into markets into the lower-wage BRICS. But that’s so much easier than moving their entire industrial stateside.
Of course it won’t. It would take years to move manufacturing to the USA. Building factories, hiring and training workers, none of that can happen over months. It’s also a huge expenditure for the business which, along with higher payroll costs, would be passed on to consumers. Costs are going to go up weather they move manufacturing here or not so why not take the path of least resistance and just pass on the tariff costs?
Especially when the US Government changes its mind about tariffs every few minutes. No one can plan major infrastructure changes around that.
And they never were going to pay labor in America. Our world economic systems created this problem with the US at the head. Now that we are entering late stages of capitalism we want to cry about things being unfair… We have to rethink the whole world economy not just what the US is doing.
And it’s not just the assembly factories that are the problem. Why the hell would you create a factory here when your entire supply chain is going to be hit by tariffs anyway. Not only are you still having to increase prices, now you’re less competitive than offshore factories due to labor, input, and real estate costs. And why would you move supply chain factories here only for them to have to deal with both the above problems and retaliatory tariffs. The US market isn’t worth that for a whole lot of things.
I had a comment like this for aptera which is being built in the us but several of its most expensive components. Battery and the carbon fiber shell are built in asia and europe respectively. Seems to me they would be best off manufacturing in like ireland or something since it won’t make a big difference in how much they charge folks but would lower costs for selling around the world outside the us. Now given this is when high tarrifs are everywhere and of course day to day who knows what they will be. Still if I was a business the best long term would be stay out of the us the way I see it.
Also, there’s absolutely no indication that Americans want to be working at poverty wages in an assembly plant. None of this makes sense even if it “worked.”
Wouldn’t robots partially take over the assembly plants anyway? They work 24/7, no complaints, no personal lives. Ideal worker.
Also, why invest in moving your entire manufacturing side to the US when you can be reasonably sure that the tariff fad will be over in 4 years at minimum, 10 years max?
But guuuuuys, everybody’s supposed to lie and make less money and become slaves :( if you don’t do that, what’s this last 50 years of political gamesmanship and duplicity and propaganda been for??
Margins on Matel products have historically been high. Strictly speaking, they could still function as a business if they insourced the manufacturing and materials, paid prevailing wage rates, and assumed their workers would also be their clients. But the impact on profits would be enormous. The degree to which Matel could produce surplus waste and assume administrative overhead would be crimped significantly. What incentive do C-levels and board members have to make this kind of change?
The US isn’t the only buyer of Matel products. Why bother insourcing to appease the current US president when they can pivot their sales to international consumer markets instead? Maybe they need to lower their prices to sell into markets into the lower-wage BRICS. But that’s so much easier than moving their entire industrial stateside.
it’ll. never. happen.
why? because profit is why the corps exist.
Yes it’s impossible