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Monday, May 12, 2008


The Biter, Bit

Kim du Toit
May 12, 2008
12:36 PM CDT

One of the Chicago Boyz notes an interesting development in outsourcing:

Chinese entrepreneur Liu Keli, who runs a company making copper cylinders for printing presses, decided to open a factory in South Carolina. He was motivated by a desire to improve his position in the U.S. market, and was surprised to find that substantial cost savings were also possible on some important aspects of his business. Specifically: electricity costs are 75% cheaper, and continuity of service is much better. Mr Liu also got 7 acres of land near Spartanburg for one fourth of what it would have cost him in Dongguan, a city in southeast China where he operates three plants.

And those savings more than make up for higher labor costs, according to David Foster.

Who’d a thunk?





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