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by brudgers 3238 days ago
I live in an area with an automotive industrial base. There are hundreds of tier 1, 2 and 3 suppliers in addition to the five vehicle assembly plants within 150 miles. Each required real-estate acquisition and development entitlement and tax incentive pursuit and contract negotiations. There were roads and highway interchanges. Sewer lines were laid and power lines run and electrical substations and ordinary fire stations built.

All those suppliers built manufacturing capacity because of established relationships with the automaker. It's why there will be German owned suppliers associated with a German manufacturer and Japan owned suppliers associated with a Japanese manufacturer, etc.

Manufacturing at scale happens by outsourcing. It's not the technology that limits, it's business capacity.