Your first paragraph assumes that labour costs are the same in both markets and that there is little development or tooling cost to setting up that manufacturing base locally. Both are false, and both of those are really the reason overseas manufacturing is a thing in the first place.
Depends on what you are manufacturing. Making shit with mills, CNC, lathes, injection molding? That’s not a problem. CMM, EDM and very precise CNC? Yeah, that needs a machine with a high upfront cost. It all depends on if you are able to get customers and if you have the raw resources / the raw resources don’t price you out of existence. Overseas manufacture is worth it because it used to be cheap labor costs. You had to fix a lot of things, but it was still cheaper than making it 100% in house. Then China started becomming less competetive and it still was cheaper, but barely. Add onto it a 30% tarrif and the entire equation changes.
Again, it probably will be painful. But we will have to see.
Your first paragraph assumes that labour costs are the same in both markets and that there is little development or tooling cost to setting up that manufacturing base locally. Both are false, and both of those are really the reason overseas manufacturing is a thing in the first place.
Depends on what you are manufacturing. Making shit with mills, CNC, lathes, injection molding? That’s not a problem. CMM, EDM and very precise CNC? Yeah, that needs a machine with a high upfront cost. It all depends on if you are able to get customers and if you have the raw resources / the raw resources don’t price you out of existence. Overseas manufacture is worth it because it used to be cheap labor costs. You had to fix a lot of things, but it was still cheaper than making it 100% in house. Then China started becomming less competetive and it still was cheaper, but barely. Add onto it a 30% tarrif and the entire equation changes.
Again, it probably will be painful. But we will have to see.