I think a post disappeared here. I wanted to jump back in and say great story DDF(?). It brought up many questions about companies, the training of their employees, the difficulty of relocating and considerations that go way beyond wage rates.
It did disappear. I deleted it. I don't want the details out there.
Moving companies abroad doesn't work as smoothly as people think it does. I know this from having done it.
Primary challenges that will crush relocation efforts:
1.) The lack of an established industry being in the target location (if it was there, they'd being putting something where competitors already have a head start. If it isn't there, they have to train people from scratch or import workers, neither option is viable, especially with high tech stuff).
2.) There are ITAR issues. In fact, often times, companies cannot even send blueprints or other sensitive information to themselves, once it is out of the country, which means that blueprints or other things need to have their dimensions changed and the accompanying documents transferred into "work instructions," with any relevant techincal information removed from the documents. This will, in some cases, make doing certain work outside of the US impossible.
3.) There are on-site inspections from the customers. In order to maintain AS9100 certifications (you aren't flying anything without this certification), the work instructions have to initially be transferred from the parent language to create work instructions that eliminate sensitive information, then transferred from the target language back to the parent language, noting each difference between that and the parent language. Each work instruction must be a controlled process, complete with revision control, and with each revision change, it needs to be certified by Quality, Operations, and Engineering departments. The COLLOSSAL amount of paperwork this creates costs A LOT!!!! I personally, hate it. HATE IT. So inefficient.
4.) Cultural differences. I won't get into this, but let's just say, some people that are used to a more laid back lifestyle, make less for a reason. They don't get jack s..t done.
5.) Initial workers are likely to be college graduates lacking real world experience due to the lack of skilled workers. The moment these graduates have an ounce of experience, they're off and looking for another place (or country), where they will make more than the 16,000 pesos a month they make as a fully degreed engineer. This creates a dependency on experienced floor personnel, that also, will leave, the moment they get 10 pesos a day more, and moving half a country away to make it (I've seen it happen more than once and it stings), just to make 8000 pesos a month. The US will NEVER overcome this because in order to do so, the target countries would have to have decades of experience, and if they had that, the workers would be worth more, which would bring in more money and work, which would better the economy, which would make moving the companies there unfeasible from an economic standpoint. The ONLY exception to this are fully automated factories or factories that are manual, easily trained work types, escaping for tax and labor reasons. Everything else will fail.
6.) Most importantly, and by far the biggest inhibitor, is the fact that goods produced in a weaker economy, but where the desired market is in a stronger economy, (in order to maximize profits) creates nightmares with; loss of immediate corporate control of everything in regards to the product, skyrockets logistical costs, and sends lead time through the roof, especially when the raw materials to produce products are strictly controlled.
Let's give an example of what I just stated.
Boeing wants to sell Iran (for example) airplanes, so they'll sign a contract for millions of dollars (if the customer were the US government, what I am about to describe could be even worse in terms of dollars, and include having the military take control of your factory to insure THEIR product delivery). What the signed contract will generate is a certain build rate per month, in order to meet their contractual obligations. If everything is an existing model airplane currently being built, all of the necessary quality inspection planning, blueprint revisions, work instructions, raw material requirements, etc, have already been generated and proven....if not, there is MUCH more work to be done, but to keep this easy, let's move past the paperwork part.
Purchasing will place an order for all of the materials needed to build the required number of aircraft per month. Titanium for example (of the necessary grade... 5553, Ti 6Al-4V, whatever (each have different tooling requirements due to modes of elasticity and the tooling needs to be ordered ahead of time too), this titanium almost always comes from Russia.... steel forgings, Austria, etc....and all of this needs to be ordered well in advance, flown to the States, inspected, trucked to Mexico, machined, sent back to the States, further machine perhaps (remember the part about ITAR regulations?), assembled, inspected, shipped to Boeing ON TIME, put on the plane and assembled, and if you're A DAY late on that part or build assembly Boeing WILL fine you a million or so for stopping their line, PER day. That's a lot to get right just in order to save a few dollars an hour on labor and taxes. It in many cases, is proving to not be worth it.
The US is safe as far as some industries are concerned.
As crazy as people think I am, I was sent abroad after the initial team had failed, to start up a $60,000,000 dollar aerospace facility, for a company that I worked for, for 8 years in the function of Manager of Machining Operations and Manager of Engineering, before leaving to work for the Mexican government. I know quite a bit about the subject. I have personally seen, multimillion dollar facilities shut down within months of operating in other countries, specifically due to the challenges that I have outlined above.
EDIT: Just to be a jerk, and being that the the tread is regarding education, I did this with a 9th grade education and a GED from the Hall of Justice, everything else, including the languages involved, I learned at home in my spare time, and set sales, quality and production records, proof being, I'm not known for being charming, but am known for results, hence the 8 years in until I decided that I wanted to do something more interesting for a living. More often than not, people will tell you that you can't do something (like own firearms for example, be a government agent, etc.) You can do whatever you damn well want to.... education is just another excuse people put on themselves. It's all bullshit.