Re: MEDIA: Globalism, end of Socialism causes of jobless recovery

From: Regina Pancake (regina@appliedfx.com)
Date: Sun Sep 01 2002 - 17:31:12 MDT


>
>
>
> But back to my original point? What has happened that the unemployed
>are no longer viewed as valuable assets? Why aren't employers & investors
>putting those people to work to make money for everybody?
> Sorry for the rant folks, but this thread is on my favorite
> subject --
>manufacturing. <G>
>Ron h.
>
I think I might have a partial answer as to why those employers and such
aren't putting people to work.
It is a real risk any more. I use to be able to hire kids for entry level
positions for shop work.
But there are no classes given in California any more for shop at the
middle school or even the high school level.
The insurance was too high so it was canceled. This was stupid if you ask
me. Not all gets should go to college. Some are just born with the
potential for blue collar stuff. Then the workers' comp. insurance.
Required by law.
I was at a lucky 4.03 %. It just went up 25% in one fell shwoop. And that's
not just me. That's state wide.
Everybody went up. the reprecutions of this won't be felt till the next
quarter when everybody has to pay the bill.
Why have employees if you can avoid it? Also, If you hire, say one guy for
$10 an hour, entry level. The taxes on that, are 15%. The fed and state
take that much from me for paying him and they take a piece of his too.

So Out-vendoring is the way to go. Send it out and encapsulate the
cost. And if you can send it over-seas, so much the better. Its so much
cheaper. Makes for a much easier figure sheet because it is quantifiable.
Not messy. If that worker screws up, you eat it. It is illegal to take it
out of their pay check and they can't work it off for free cause that's
illegal too.

I had a learning experience about a month ago, with manufacturing. We were
looking into getting some items produced. Starting in the 100,000 units
range. It had 3 snap together parts. no screws and a small LED plus a chip
to run it. We wanted to get it made in America. Should be no big deal. The
Solid Works files were good. The product had already been engineered and 10
samples had been made, rapid prototyped in resin and built complete with
color. What's known as a "Works like, Looks like" model.
Shopped it around America to get prices on injection molding. not
assembled. Just the plastic housing.
The lowest bid I think was $51,000.00 just for the tooling. Then I think it
was 75 cents each for 100,000 units. Then another $51,000.00 for a new
mold. Because they wear out.
Alrighty then.
  We went and checked into Hong Kong.
$8000 for the same tooling, replacement tooling after 250,000 units run.
pennies per unit.
Where would you go?
Regina



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