Among the reasons for this was the fact that the U.S.A. is one mass market. It is only when you have a mass market that large-scale manufacturing which involves very substantial expenditures can be justified.
Sentiment: NEGATIVE
Money flows into the US, and inflates US assets, and allows the US to have a monstrous trade deficit. That means we are consuming more than we are producing.
We find that no matter what country we're in, if we hit the right economic notes and appeal to the mass market, we're able to build the business very, very rapidly.
The U.S. and European markets have become mature, profit margins are lower, and equipment isn't so new. Because profits are relatively low, it limits the willingness of companies to invest in newer equipment.
Whatever the trend in exchange rates or whatever the external factors, a manufacturing company is always faced with the mission of transforming itself into a company that can produce higher value-added to absorb the increase in the cost of living in the country it's operating in.
There are supply chains that exist in China and Asia now which the U.S. simply can't replicate.
The fact that the U.S. is superior to all others allows for free commerce to take place.
Because if you don't have a great workforce, a great higher education system, you're not going to have the next eBay, the next AmGen, the next, you know, Miasole, and not only California but America is going to fall behind a whole new competitive context which is obviously China, India, and other countries.
The economic situation, the high cost of undertaking manufacturing, the supply chain - which is, by the way, dying out also as manufacturing undergoes hardship - make the U.K. not the first place you would look at to make a manufacturing investment.
It is a foregone opportunity that we could have a trillion dollars more of income for the United States if we were producing at capacity rather than falling so far short of it.
China saves too much, produces too much, sells too much to Americans and consumes too little.