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Posted On: 01/23/2024 7:58:54 PM
Post# of 13169
Taking it one step further, what are the advantages of having a production facility in the United States?
- Do not see a cost advantage. Raw material , lithium supplies etc. will need to be imported/assessed the 25% tariff. Due to the cost of the dollar versus the RMB, see disadvantage, not advantage on exchange.
- Direct labor will be more expensive in the US. Taxes will be higher and government regulation greater.
- Supply chain leadtimes, probably about the same due to the long poles in the tent which will be material.
What’s the advantages here?
- Do not see a cost advantage. Raw material , lithium supplies etc. will need to be imported/assessed the 25% tariff. Due to the cost of the dollar versus the RMB, see disadvantage, not advantage on exchange.
- Direct labor will be more expensive in the US. Taxes will be higher and government regulation greater.
- Supply chain leadtimes, probably about the same due to the long poles in the tent which will be material.
What’s the advantages here?
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