I was listening to a finance podcast that was going over the finances of moving production from the United States to Mexico. At the end they reviewed the “cost savings” of all the salaries versus the now higher costs of freight and other import related expenses.
In their example they saved only $4 dollars per unit.
So the decision would have been to move a plant employing 10K people because $4 times a 100K units per month is nearly $5,000,000 over the course of a year. The reason to do this – and I shit you not – was that the company has a responsibility to their shareholders to be as profitable as possible.
What about the people who work in your factories? Where is your responsibility to the people who work for you?
And do any of you realize that if you offshore all our work no one will be left to buy your products?
