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Guess What Is Now No Longer Made In America?

8 November 2010 11 Comments

Certain things are just supposed to be made in America. Even as the outsourcing trend continues and America’s manufacturing base continues to erode.  Unfortunately, it an eroding economy complete with high unemployment and higher costs, companies are forced to find the cheapest labor in order to stay profitable and stay in business.

Guess what business is now moving more manufacturing overseas to India?  Harley-Davidson.  The iconic American motor cycle brand will now be made in India.

What is next?  Apple pie?  Maybe we can start building NFL arenas in India and playing football over there too?

Unfortunately, we have a government full of people leading this country that either have never worked in the private sector or would utterly fail a test on basic economics.  Rather than create an environment that keeps companies in America – and BRINGS companies TO America – we are driving them away with higher regulations, higher taxes, etc. and then trying to compensate for this erosion by borrowing money and printing money.

Recipe for disaster.

This economy is broken and unfortunately, until the idiots in Washington get out of the way, and Congress gets rid of the Federal Reserve, the course is set.  So while more and more jobs are shipped overseas, you better be taking action to prepare yourself for the realities of the day.  That reality is a lower standard of living.

You can read more about the new Harley plant in India here.

11 Comments »

  • Money Beagle said:

    That totally sucks. I remember when they came back from the dead 10-15 years ago or whenever it was, and how every story written about them talked about how the bikes were still made in America.

    Soon there will be nothing left for us to build.

  • chris said:

    This is a duplicitous post that skews the reality of the situation. Harley is opening an additional plant, not outsourcing a current operation. It is manufacturing the parts in the United States, and shipping them overseas to be assembled and SOLD in India. The bikes in the states will still be made in the states, like they always have.

    Market expansion accomplished by selling Harleys in India will in actuality result in MORE jobs in the USA, producing parts for those bikes.

    I just hope most people click through to the original article to read the truth about this story.

  • Drew said:

    They did this to avoid paying India's 60% tarriff on imported motorcycles, so that they can compete in the Indian market.

  • Truthftw said:

    Tell this mis-informed information to the people at the York, PA plant who have lost their jobs, or have been forced to retire. Ask them why 60% of what was once produced in their plant is no longer produced in the U.S. and is now produced in Mexico and other cheap labor countries. One article, "Truth" does not make. Research the facts.

  • 20smoney said:

    Still, assembly plant is being built in India not America.

  • Stephan said:

    Its the global economy. I think its naive to think that we will always be building everything we need to succeed here in America. Global competition means Harley, an american company, needs to export assembly so it can succeed and not lose marketshare. If they dont do this, the company fails, and thousands of people lose their jobs.
    Dont you think taking this issue as a "keeping jobs here no matter what" is extremely short sighted?

  • Mark said:

    Concerning Chris' comment, even if that is the case, the article still underscores the fact that American Business is leaning more and more toward outsourcing overseas. When does it stop? Like as was said, will it be our apple pies next?

  • Felix said:

    I'm an engineer and don't have an economics degree, but here are my thoughts. I work for Automation Tooling Systems (ATS, ticker: ATA.TO) in Canada and we design and build automation systems for manufacturing companies. Our machines replaces people working on the manufacturing floor. In fact, a lot of our customers (majority are companies that are household names in the US) have operations overseas in Asia. There are 2 related issues: i) shipping jobs over to Asia, and ii) using machinery to replace jobs. On the surface, it would appear that these moves are hurting our (I say "our" because the US and Canadian economies are interwined so much) economy, but I believe that is not the case.

    Let's say Harley Davidson decided, instead of building a plant in India, they built a plant in Michigan. And in that assembly plant, instead of buying machines from ATS, they hire people to do all of the assembly work. The operators there are unionized and their average wage is $25/hr (instead of $4/hr for operators in India). Since more operators are needed because of lack of machinery, Harley's operational costs are also higher per motorcycle. What do you think happens? Yes, there are more jobs in Michigan, but only temporarily. Harley eventually can't make money because their operations cost too much. Their competitors, who have plants in China and India, sell products at lower costs and take market share. Harley goes bankrupt and end up laying all all of their workers in Michigan and all of the other plants in the US. In the end, there is a net loss of jobs in the US along with the death of a great American company.

    I don't believe our goal should be to maximize jobs, but rather maximize productivity. If we wanted to maximize jobs, tomorrow, we can go into our manufacturing plants and destroy all machines and have North Americans do things manually…but that will be the end of our continent, economically. What we need to do is increase productivity and sustainability…and if that means shipping jobs offshore, so be it. In the end, Harley will become a bigger and better company, with better and more jobs (engineering, marketing, etc.) here in North America and the less desirable jobs (low paying jobs like operators) offshore. And I will still have a job at ATS.

  • @FinancialPlan said:

    There may be cases where jobs are being moved for lower costs but this isn't one of them. If you read the article, you will also see that the move gets around the higher costs of importing into India. If they didn't do this their future growth their would be lower, making it harder for the US plant to export.

    For goods such as cars and motorcycles, it is politically and sometimes economically beneficial to build where the market is. Just think if Toyota didn't decide to build in the US. They wouldn't have anywhere near the market share they have now.

    20smoney has got this one wrong.

  • Tyler said:

    Just watch, GM is going to do the same thing…that's why I think rather than investing in GM's old ideas we should focus on investing in the new American automotive industry that is developing plug-in hybrid vehicles such as Quantum Fuel Systems (http://www.qtww.com) which is developing the Q-Drive for the new Fisker Karma. These are companies that are developing new technology and not just trying to cut costs on a commodity product.

  • Kevrell said:

    None can doubt the vcearity of this article.