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Germany Now Outsourcing Jobs to India, I Mean, Uh... America
October 28, 2010 10:20 AM
NOW THIS IS HAPPENING
What happens when labor costs make it too expensive to manufacture your product domestically?
You outsource the work to India. Mexico. South Carolina.
Yes, that's exactly what it's come to, folks. BMW has opened a plant in Greer, South Carolina, where the workers earn half ($15/hr) what their German counterparts do.
"We are a low-wage country compared to Germany," Kristin Dziczek, director of the Labor and Industry Group at the Center for Automotive Research,
"And that helps put jobs here."
Sure, jobs are being created here. But they're here because wages, adjusted for inflation, have declined since 2003.
Other foreign companies taking advantage of America's transformation into a third-world country include Michelin, Bosch, and Daimler, which is now building its Mercedes C Class in Tuscaloosa, Alabama.
What's really terrifying is that India itself--the classic outsourcing destination of choice--is now outsourcing
Tata Consultancy Services
a software development center in Guadalajara a few years ago to save money.
And it won't be long before those jobs are being re-outsourced from there.
I hear Omaha's got cheap labor...
No positions in stocks mentioned.
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