America, the Next Outsourcing Destination
Posted by: Amir Nada Jun 18, 2014 02:06 PM
With Airbus recently announcing a final assembly plant for its A320 jet in Alabama you start to wonder where all this outsourcing is going that people talk about. In the case of Airbus, we’re pretty sure the French labor unions aren’t too happy right now; with workers in Alabama not expecting 35 hour workweeks and eight weeks of vacation per year. Plus, they can actually be laid off when bad times come around.
Airbus is far from the first foreign aircraft manufacturer to set up shop on U.S. soil. Honda Motor Co. is headquartered in Japan but its new HondaJets are built in North Carolina. Brazil based Embraer is now assembling Phenom 100 business jets in Florida. You may be surprised to learn that costs are about equal with Phenoms assembled in Brazil. With the closing of the space shuttle program at the nearby Kennedy Space Center there is a large pool of highly skilled workers available.
Who says the U.S. isn’t competitive in manufacturing?