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by photochemsyn 1297 days ago
I have a fairly unusual history relative to my general cohort in that between high school and college, I spent about two years working in electronics manufacturing and assembly factories (age 17 to 19) in California. I did work like injection-molding cases for devices, cutting cable and crimping connectors for computer cables, and finally, a bit of work in a laser-welding facility for precision components in Silicon Valley. The pay was remarkably good for someone my age with nothing but a high-school education, particularly when production ramped up and overtime was available (I could afford my own small apartment, and bought a car), but eventually the tedium convinced me to go to college (plus, the people upstairs in the R&D division had better pay and more interesting jobs).

Some of those jobs still exist but most of that work has been outsourced to China and Mexico and Indonesia and the Philippines. There seem to be a fair amount of high-end prototyping shops but very little mass production activity, particularly of the basic components that go into tech devices. That's because:

> ""PCB [printed circuit board] manufacturing and assembly is a very low-margin business and is largely located in Asia. It comes down to access to low-cost labor, a vast ecosystem of factory infrastructure, and flexibility. It is hard to replicate the ecosystem in the US today," said Kundojjala. "

https://www.pcmag.com/news/silicon-usa-technology-made-in-am...

The primary reason Apple and others pushed for oversea production via NAFTA trade deals, WTO membership for China, etc. is to cut labor costs. Paying kids with high-school education relatively high wages was seen as too onerous, so the factories were shipped overseas. While I worked in electronics, this exact same thing happened with the similarly-sized garment manufactuing industry.

Now if you're wondering why there's an epidemic of homelessness and poverty in California, and it's become the state with the largest income gap in the USA, well, that's why.

2 comments

>> ""PCB [printed circuit board] manufacturing and assembly is a very low-margin business and is largely located in Asia. It comes down to access to low-cost labor, a vast ecosystem of factory infrastructure, and flexibility. It is hard to replicate the ecosystem in the US today," said Kundojjala. "

I have a section in The Big Bucks about "PCB manufacture": it used to be [1970's] outsourced on a piecework basis to people in my neighborhood [SV] who did it in their garages. Some of the very old timers around here still remember it. It was before my time.

The electronics companies would deliver the boards & the parts, and the neighbors would stuff them. One of those companies was Apple, I believe.

If you were really good they might have you solder.

> Now if you're wondering why there's an epidemic of homelessness and poverty in California, and it's become the state with the largest income gap in the USA, well, that's why.

Because companies moved low skill labor elsewhere because it is cheaper there?

As you move up the manufacturing ladder, skill levels rise fairly quickly - and many college graduates would struggle with these jobs, without undergoing a fair amount of training. Laser welding is fairly high-skill - a mixed combination of laser types, gas feeds, high-voltage equipment, compatibility issues with different laser types and materials, etc. Likewise, auto assembly and steel production are fairly high-skill jobs.

Even the developer world has seen this trend - why pay US wages to developers if you can get the same labor at one-fifth the price in India?

The result of course is the minting of more American billionaires, the conversion of domestic property markets into gambling casinos and rental emporiums, and most troublingly, the loss of much technological know-how to other countries. Radio Shack used to provide electronics hobbyists, whose day jobs were simple electronics assembly, with products; that ended and they tried to become a retailer of Chinese-made products before going out of business.

It's basically the story of the greedy investor class who killed the goose that laid their golden eggs.