But a growing number are no doubt drawing up backup plans that look a lot like Harley’s. Businesses still hope the protectionist wave burns itself out, and the logic of globalization reasserts itself.
Of course, supply chains that took years to take shape won’t change location overnight. When, under pressure from the Obama administration, it began assembling computers in Austin, Texas, it encountered numerous quality-control and workforce headaches. out of American-made components would add up to $100 to its cost, according to a 2016 article in MIT Technology Review. This assumes, of course, Apple successfully relocates its supply chain. Those competitors now have a 25% cost advantage.Īssembling an iPhone entirely in the U.S. “There are only foreign competitors to what we do,” Morrison Carter, the company’s chief executive, says. By continuously improving its production process, it has avoided price increases and now sells all over the world.īut that arrangement has been endangered by the 25% tariff on imported steel, the dominant input into Beckett’s products. originated in the U.S., according to Bruegel, a Brussels-based think tank.īeckett Gas Inc., family-owned manufacturer of components for boilers, furnaces and water heaters, has over the years shifted production from abroad to its Cleveland-area factories. About 17% of the value of Mexican-made cars exported to the U.S. Routine, blue-collar jobs do get outsourced but high-end research, marketing and design work gravitates to the U.S.Ĭanadian steel uses iron ore from Minnesota, so Mr. While globalization is routinely portrayed as bad for U.S. Please consider That Noise You Hear Is the Sound of Globalization Going Into Reverse by Greg Ip. As trade barriers break up, world-wide supply chains, the real costs are higher prices and fewer choices for consumers says Greg IP, my favorite WSJ author.
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