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Onshoring

Posted: Thu Jun 16, 2022 8:43 am
by twocoach
I found this article about the fact that supply chain woes are starting to make bring some manufacturing back to the US a more feasible option to be very interesting.

https://www.nytimes.com/2022/01/05/busi ... uring.html

Sure enough, Lego announced yesterday that they plan to build a huge manufacturing plant in Virginia to start building Lego bricks in the US again. Seems that a pandemic has been good for the sitting around the house building Lego business.

https://www.cnn.com/2022/06/16/business ... index.html

Re: Onshoring

Posted: Thu Jun 16, 2022 9:38 am
by TDub
how many thousands of gallons of diesel does it take to offset the cheaper costs of overseas manufacturing.

Re: Onshoring

Posted: Sat Jun 18, 2022 9:31 am
by zsn
By the time Lego plant is operational China would reopen and some accountant would do the math to show that it is actually cheaper in the next couple of years to tear it down and continue importing than it is to operate that plant. They will then tear down that plant. They will however take advantage of the the extortion sum……er…….tax break they got from the local government. Trust me when I say I have first hand experience of this phenomenon in pharmaceutical manufacturing.

Color me a cynic.