Cheap Labor is Dead -- And so is the USA

[flacaltenn]

What has Uncle Flacaltenn been trying to tell you trade isolationists? That the only way to protect America's standard of labor is to make "cheap labor irrelevant?" Think I was just bloviating?

http://www.szcpost.com/2011/08/foxconn-to-employ-1-million-robots-in-3-years.html


Foxconn Technology Group held a hip-hop party at the headquarter in Longhua Shenzhen last Friday night, on which Chairman Terry Gou disclosed, Foxconn is making efforts to increase its robot workforce on production line to replace non-technical workers. Foxconn currently has 10000 robots and plans to increase the number to 30000 next year. The company also announced it plans to have one million robots in three years.

The robots that have been put into operation on the production line is “Foxconn Shenzhen No. 1” that is independently developed by the company in 2006.

“On the Foxconn’s flow lines, many simple and repeated works, such as repeated clicks of one button, used to be done by workers. Now these works are all done by robots with high efficiency and controllability,” an insider of Foxconn said.

Foxconn currently has nearly 1.2 million employees, of which over 1 million are from the mainland.

One million robots -- 1.2Mill employees -- you do the math.. Not cheap OVERSEAS robots -- the article says -- but intelligient ones. Meaning that all the experience they have with manufacturing will be inserted into the robots brains.. What were the technologies we needed to pursue? Robotics, artificial intelligience, materials and bioscience? We're gonna lose our only chance to survive economically if we don't ACT NOW!!!!!

Think the Central Politburo is gonna prohibit FoxConn from implementing their evil plan in order to protect CHINESE workers? Think that once they develop the 21st manufacturing skills and processes that AMERICAN workers are gonna be relevent at all?

We were warned.. It is happening.. And we are arguing about the rich and the Tea Party..

We're doomed if we don't wake up and start training and clearing the decks for this to happen to HERE FIRST..

[flacaltenn]

I bumped this so that I could imagine the spit-takes when you guys go for the morning coffee... Have a GREAT morning in what's left of America..

[BlueStreak]

(Chinese hip-hop? Now that's got to be a hoot.)

The whole thing can be fixed by putting "under God" back into the Pledge of Allegiance
or electing people that remind you of your next door neighbor............:p

Seriously,

You're right, but we would have to pay for all of that education.
And then do all of that educating competently.........

So, it's not going to happen.
It has no support from either side of the aisle.

Dave

[bhunter]

What has Uncle Flacaltenn been trying to tell you trade isolationists? That the only way to protect America's standard of labor is to make "cheap labor irrelevant?" Think I was just bloviating?

http://www.szcpost.com/2011/08/foxconn-to-employ-1-million-robots-in-3-years.html




One million robots -- 1.2Mill employees -- you do the math.. Not cheap OVERSEAS robots -- the article says -- but intelligient ones. Meaning that all the experience they have with manufacturing will be inserted into the robots brains.. What were the technologies we needed to pursue? Robotics, artificial intelligience, materials and bioscience? We're gonna lose our only chance to survive economically if we don't ACT NOW!!!!!

Think the Central Politburo is gonna prohibit FoxConn from implementing their evil plan in order to protect CHINESE workers? Think that once they develop the 21st manufacturing skills and processes that AMERICAN workers are gonna be relevent at all?

We were warned.. It is happening.. And we are arguing about the rich and the Tea Party..

We're doomed if we don't wake up and start training and clearing the decks for this to happen to HERE FIRST..

Despite that I am about to embark on a month of refraining from purchasing PRC goods, I am a free trader and believe in comparative advantage; however, my problem with the Chinese is that they create an unfair playing field. I tend to see both political and health issues on the horizon for the Chinese. The increasing affluence appears to be bringing more traditional Western disease to the Chinese populace. India is another economic power house, but also has some internal problems lurking under the surface.

I concur in your lucid view of winning through innovation, insight, and ideas. There is still a lot of nascent creativity here that needs to be utilized more effectively. Sadly, there will be those that cannot participate in the game because of lack of preparation or simply lack of innate ability,

[merrylander]

Look at it this way, their biggest buyer is Steve Jobs, all the iPhones and iPads are made at Foxcomm. A side benefit will be that the girls working at Foxcomm will no longer be committing suicide jumping from the fifth floor of their dorm.

[finnbow]

Time to buy stock in German robotics companies.

[merrylander]

Ever see a robot go berserker, can do more damage in five minutes than a direct hit.

[BlueStreak]

Ever see a robot go berserker, can do more damage in five minutes than a direct hit.

Yes, I have. Had one with a defective resolver throw it's arm straight out at full speed and knock an enclosure door open striking me in the head once. In retrospect, it had to look comical as hell, me getting punched in the head by a robot. But, it nearly knocked me out and left me with a lump and a headache for about three days.

Luckily, it was just a little guy. An "Adept" tabletop.......Japanese made. If it had been one of the big ABBs, it would have crushed my skull.

Dave

[flacaltenn]

Time to buy stock in German robotics companies.

Hey thanks for the stock tip Larry.. Now I gotta get back to bashing American Corporations for sending all our jobs overseas....

Sheeeshh.. ;)

[CarlV]

Didn't Japanese company(ies) try that about 20 years ago? IIRC the cost of a skilled maintenance and repair crew at all times was more than the human laborers.



Carl

[flacaltenn]

(Chinese hip-hop? Now that's got to be a hoot.)

The whole thing can be fixed by putting "under God" back into the Pledge of Allegiance
or electing people that remind you of your next door neighbor............:p

Seriously,

You're right, but we would have to pay for all of that education.
And then do all of that educating competently.........

So, it's not going to happen.
It has no support from either side of the aisle.

Dave

One reform required is to push the teacher's unions out of the way and allow Virtual Education to take off. There is no reason in world why your last 2 years of High School and first 4 years of college shouldn't be individually tailored and self-paced ON-LINE instruction.. Many states are already fighting this battle. Your concern about COSTS would radically diminish. In fact, with quality material on-line, and laboratory facilities available in every metro area, you should be able to get a BS degree for under $10K/year while living at home. On-line instruction could feature MENTORING by the top folks in each field, not a tenured professor looking for someone to take his lectures.

The final years of high school could be tracked for co-op work studies, technical school, or apprenticeships as well as allowing kids to pursue purely academic tracks. Imagine music biz students having one day a week with Paul McCartney as a guest lecturer. Or Steve Jobs doing a section on defining products that sell.

Washington needs to get the hell out of the way.. Fire the GREEN jobs czar and find a JOBS czar who understands how to target the largest sectors of employment.

Get those foreign profits BACK in the US by offering a lower rate for R&D investment with those funds. No skin off the Treasury's back to do that.

And make certain that EVERY critter elected to Congress prefers R&D to subsidizing crap already designed and made. End the mindless subsidies and convert a fraction of that to "innovation subsidies". Rewards even for acheiving certain product goals..

The rest of it will come naturally. We CAN be manufacturing stuff in this country again. The Chinese don't want us to have the opportunity to figure that out. THey figure we are paralyzed arguing with each other about the garage sale of what's left in America.. And they are right...

[BlueStreak]

I would say that in order for that to work...You first need students (And parents.) with the discipline to do all of their schoolwork at home.....without turning to "Roman distractions" such as video games, television, watching squirrels steal birdfood, etc............

Dave

[flacaltenn]

I would say that in order for that to work...You first need students (And parents.) with the discipline to do all of their schoolwork at home.....without turning to "Roman distractions" such as video games, television, watching squirrels steal birdfood, etc............

Dave

Got news for ya.. Having spent time at my Daughter's college recently, if you think the HOME distractions are bad, try concentrating in a college campus living situation!!! OMG -- It's constant pandemonium and stimulation. You NEED some library hours just to calm down..

[BlueStreak]

Got news for ya.. Having spent time at my Daughter's college recently, if you think the HOME distractions are bad, try concentrating in a college campus living situation!!! OMG -- It's constant pandemonium and stimulation. You NEED some library hours just to calm down..

This is why I hesitate to get into these education squabbles.
I have no dogs in the fight. I just get to pay for it...............:rolleyes:

Dave

[flacaltenn]

Didn't Japanese company(ies) try that about 20 years ago? IIRC the cost of a skilled maintenance and repair crew at all times was more than the human laborers.

Carl

I hate to stereotype Carl, (like i do about DWA driving while asian), but the Japanese at the time were notoriously bad about programming. And the actual robotic applications NEED to be written by in-company folks or those extremely familiar with the processes.

Don't think the Chinese will have THIS handicap.. However they do have the cultural handicap of cowtowing to authority. And that will hinder the creativity somewhat but be wonderful in terms of having obedient and attentive employees that never take a break..

At any rate -- it only illustrates that automation does not neccessarily just strip jobs -- but reassigns more of them to skilled labor..

[BlueStreak]

...True. But unfortunately, it also assigns some of the unskilled, who are unable to adapt, onto the welfare roles.

I remember reading an article about a Japanese company that attempted to build a factory that required no unskilled labor. In fact, they attempted to set it up so that it could run overnight, and/or a weekend, with no employees present whatsoever. The system would simply alert the maintenance manager if there was a problem and he would dispatch technicians to the plant to correct it.

As I recall, it was a disaster. Massive downtime due to transit times, a fire that ran unabated until local firemen could respond, etc., etc..............There is always a problem with something that complex. It's always best to have someone around to keep an eye on things.

Dave

[flacaltenn]

...True. But unfortunately, it also assigns some of the unskilled, who are unable to adapt, onto the welfare roles.

I remember reading an article about a Japanese company that attempted to build a factory that required no unskilled labor. In fact, they attempted to set it up so that it could run overnight, and/or a weekend, with no employees present whatsoever. The system would simply alert the maintenance manager if there was a problem and he would dispatch technicians to the plant to correct it.

As I recall, it was a disaster. Massive downtime due to transit times, a fire that ran unabated until local firemen could respond, etc., etc..............There is always a problem with something that complex. It's always best to have someone around to keep an eye on things.

Dave

That's just bad expectations.. It's lack of humility to believe that you don't need human supervision on the line at all times. The LESS staff - the more highly trained for contingencies.

You'd never try that trick in Silicon Valley where PG&E can brown you out whenever they fail to buy out of state power for the day.. Or in Tennessee where a lightning strike or a tornado alert could put you in deep hurt..

That's just stupid ARROGANCE..

[Dondilion]

By substituting migrant workers for robots Mr Wang became competitive:

http://money.cnn.com/2009/04/13/technology/gunther_electric.fortune/

[flacaltenn]

Dondilion:

Mr Wang's days are numbered then also.. Part of the push by FoxConn is probably due to quality issues with customers - which Wang evidently doesn't have. But having a linkage with my clients Chinese manufacturers, I know that wage pressures are already affecting the bigger companies over there.

Wouldn't be surprised if Central Planning in Bejing was using FoxConn as a subsidized test case to see how far they can contain wage inflation there by threats (or reality) of automation..

If in 10 years, we see Chinese workers at a higher standard of living than us working only 30 hour weeks and spending their time doing art and dancing -- we'll know they invented 21st century manufacturing..

What will the lefties have to whine about then in regards to China? Won't be working conditions, or cheap salaries, or dormitories or environmental laws? Who will they BLAME then? (it'll still be the US corporations' fault!) Guess they'll be in favor of keeping the borders sealed then ----- to robots..

[merrylander]

Having had some Chinese software people in for training I saw one effect of their one child per family rule, spoiled rotten and arrogant as hell.

[BlueStreak]

That's just bad expectations.. It's lack of humility to believe that you don't need human supervision on the line at all times. The LESS staff - the more highly trained for contingencies.

Up to the point where existing staff are overwhelmed.

You'd never try that trick in Silicon Valley where PG&E can brown you out whenever they fail to buy out of state power for the day.. Or in Tennessee where a lightning strike or a tornado alert could put you in deep hurt..

That's just stupid ARROGANCE..

Very true.