site banner

What it takes to source USA-manufactured components and tooling for a chainmail grill scrubber

inv.nadeko.net

The website is a user-friendly proxy for youtube - if it has trouble loading the video, there's a link to the youtube page (or just edit the url).

You may have read things like Why Amazon Can't Make A Kindle In the USA, but what about a hand tool with no electronics, just a few materials, large tolerances, and a simple assembly process? The same problem of manufacturing engineering being exported for greater integration with manufacturing labor applies to that, too - according to this, American "tool and die" capabilities for small-scale manufacturing are gutted. (I suspect the this video overstates the problem, because the biggest obstacle came when the non-manufacturing engineer with a small budget wanted to contract out a specific need - molds for plastic injection molding, which the molder would have sourced from the PRC - and two other engineers lent their expertise for two different ways of manufacturing plastic injection molds, and he found a mold-maker, after he needed to change the material of a part, but it's still a big deal that there aren't more American vendors advertising these capabilities.) And the video didn't even touch the materials supply chain...

(The completed grill scrubber was priced at $75 and the initial batch sold out within hours, in case you were wondering.)

If you haven't read things like that Forbes series, you might not fully appreciate that it's very easy to have a false perception of what the manufacturing capabilities of other countries are, due to selection bias in exports; there's often a wide variety in the quality of goods produced in a given country and only a narrow range of quality that's economical for you to import. One famous example is the brand images of German cars in America, which only imports expensive German cars. Less famously, there's been a secular trend of American imports of Japanese musical instruments going from the bottom to the top of the Japanese (followed by other Asian countries') production ranges and many American musicians assume each decade's imports were a representative sample. But, since manufacturing labels reflect final assembly, increasingly complicated supply chains are mostly invisible to the consumer. It'd be interesting to know what this partnership would have done differently, if they had expanded their searches to Mexican and Canadian suppliers as an acceptable alternative to American suppliers (as a larger-scale business intent on "friend/near-shoring" would), but the value of purism vs general applicability is a "six of one, half a dozen of the other" type thing.

As someone who's pro-industrial policy and also anti-CCP, I think think the supply chain problem is one of those issues with a lot of misplaced attention, wherein globalization gets projected onto various political narratives, to the detriment of analyzing capability.

(Hopefully that's enough of a conversation-starter, without crossing into CW!)

17
Jump in the discussion.

No email address required.

As someone who's pro-industrial policy and also anti-CCP, I think think the supply chain problem is one of those issues with a lot of misplaced attention, wherein globalization gets projected onto various political narratives, to the detriment of analyzing capability.

CPC wants to rule, or at least have veto power in the world by providing quality stuff in quantity at an unmatched price.

Quoting JZ281C from twitter

I used to think that CN will appreciate its currency to help rebalance trade. This makes sense for an economic perspective, but from a geopolitical perspective it would make sense to keep CNY undervalued for now.

My main mental-model recalibration is recognizing that geopolitical considerations increasingly dominate economic calculations.

The big unknown is whether China's end game is co-existence with the US, or destruction of the current US political-economy. If it is the latter, then it will continue to be extremely aggressive with its strategic offensive in the global trade/tech domain.

CNY undervaluation is increasingly concentrating global industry in CN. This is a geopolitical move. You cannot understand this with economic logic.

CNY undervaluation sacrifices present Chinese living standards/consumption in exchange for future geopolitical dominance.

CN is essentially engaged in a war of attrition of national will power against all the other great powers including India. Countries that cannot suppress popular demand for higher present standard of living will lose geopolitical power to CN over time via de-industrialization.

There is no free lunch. Any attempt to compete in industry with China will involve major sacrifices in present standard of living. Any country that cannot out-save China will lose. Competing with China is not about policies. It fundamentally requires national mobilization similar to a total war. Simply printing money to subsidize industry without suppressing consumption will lead to inflation and eventually debt/currency crisis. US didn't have a market economy during WWII, it had wage/price controls and War Production Board to coordinate industrial production at the national level. People planted victory gardens and accepted rationing.

All in all, if you want to fight China geopolitically, maybe you should not have utterly burned out the goodwill of the working classes. Maybe they'd be willing to make big sacrifices then. Asking people you have been trying to replace to accept a 1950s standard of living will be a hard sell.

All in all, if you want to fight China geopolitically, maybe you should not have utterly burned out the goodwill of the working classes. Maybe they'd be willing to make big sacrifices then. Asking people you have been trying to replace to accept a 1950s standard of living will be a hard sell.

Can you elaborate? Who's "you," how was the goodwill of the working classes burned out, and who's being asked to accept a 1950s standard of living?

Can you elaborate? Who's "you," how was the goodwill of the working classes burned out, and who's being asked to accept a 1950s standard of living?

Americans. Without Chinese imports, American standard of living would go down in a big way until a supply chain of substitutes could be created. A decade of suck, at the very least. Millions of people who depend on reselling cheap Chinese imports them would lose their livelihoods.