So, the title of the thread starts by saying, " Please tell me I am WRONG!"
So, after reading all the responses so far, I'm going to do exactly what oldcutmarina asked us to do since nobody else has yet done it.
oldcutmarina.........just because this is what you asked us to do............you're wrong!
You're welcome
Now as for the rest.........I have an education in Supply Chain Management and Logistics and I can tell you this.....Globalization is here, and it's not going to go away. Companies and nations who accept it, thrive. Those that don't, get left behind.
In this world of the global economy, the international exchange of goods and services, having strong and healthy Supply Chains relies on strong relationships and trade agreements as they are imperative and essential to maintain not only your businesses and your economy, but that of your trading partners throughout the world. If you are unable or unwilling to trade with other nations in accordance with in place agreements, jobs are lost, businesses close and economies could collapse.
Likewise, if you can’t sell what you’re manufacturing, or buy what you need to manufacture it, because there is no longer a demand for your product because it is easier and cheaper to get it elsewhere at the same quality or perhaps your competition has surpassed your capabilities and quality, essentially making their product better than yours and at a better price, because they have accepted globalization when you haven't, there isn’t a demand for your product anymore and jobs disappear! It is that simple.
As a consumer, you want the best quality product, for the lowest possible price. Manufacturers want to provide a quality product for the lowest possible cost to manufacture that product so they may keep the price you pay as low as possible. If they can make their product with the same quality, for a lower cost to produce that product elsewhere, that is what they are going to do.
If for example it cost a Canadian manufacturer $75,000/month in facility costs, $50,000/month in supplier costs, $50,000/month in R&D costs, $50,000/month in transportation costs to ship or receive product, and $75,000/month in wages for a total operating cost of $300,000/month in total operational costs to produce their product, but by moving to China they could do it for $250,000, by moving to the United States, they could do it for $175,000 and by moving to Mexico they could do it for $150,000. What would you do?
The other option that is available to businesses to mitigate their losses is the easiest of them all to implement. Cutting the workforce. Automation is killing off good paying jobs as much, if not more than a business relocating their production facilities out of country. CEO’s, and shareholders alike are asking a simple question, “How can we restructure and eliminate these positions to save on labor costs? Can we consolidate them into one position, or is automation a viable option to explore?” If the cost to automate is cheaper than it is to maintain the workforce at the current level, as an executive responsible to report to the shareholders and keep costs down and profits up, what would you do? What would your recommendations be?
Remember this if you remember nothing else, businesses are in business to make money. Whether that’s the pizza place on the corner, or the huge manufacturing plant on the other side of town. CEO's and Presidents of companies must answer to the shareholders. The profit margin is all that matters in the end. The most important question being asked is always, “How much did we make over what we paid in costs, and fees? What is our net profit?” Manufacturers are ALWAYS looking to reduce their costs to make their product, and in their efforts to do so, they will either reduce their workforce (if they must), they may automate, or they may relocate. They will do whatever it takes to reduce their costs, and even then after exhausting all available cost reduction measures, they still may close their doors, because those cost reductions they do find simply are not enough to outweigh their costs and remain competitive. Whether any of us like it or not, THAT is why companies close and move. Either way, it always costs people their jobs.