General Electric has moved some of its key appliance-manufacturing work back to the USA, re-opening "Appliance Park," a megafactory in Louisville, KY. The company is finding it cheaper to do some manufacturing in the US relative to China, thanks to spiking oil costs, plummeting natural gas prices in the US, rising Chinese wages, falling US wages, and, most of all, the efficiencies that arise from locating workers next to managers and designers.
The GeoSpring suffered from an advanced-technology version of “IKEA Syndrome.” It was so hard to assemble that no one in the big room wanted to make it. Instead they redesigned it. The team eliminated 1 out of every 5 parts. It cut the cost of the materials by 25 percent. It eliminated the tangle of tubing that couldn’t be easily welded. By considering the workers who would have to put the water heater together—in fact, by having those workers right at the table, looking at the design as it was drawn—the team cut the work hours necessary to assemble the water heater from 10 hours in China to two hours in Louisville.
In the end, says Nolan, not one part was the same.
So a funny thing happened to the GeoSpring on the way from the cheap Chinese factory to the expensive Kentucky factory: The material cost went down. The labor required to make it went down. The quality went up. Even the energy efficiency went up.
GE wasn’t just able to hold the retail sticker to the “China price.” It beat that price by nearly 20 percent. The China-made GeoSpring retailed for $1,599. The Louisville-made GeoSpring retails for $1,299.
The Insourcing Boom [The Atlantic/Charles Fishman]
In a new paper in Progress, Oxford economist Vuk Vukovic argues that the key to re-election in local politics is to be just corrupt enough: giving lucrative contracts and other benefits to special interests who’ll fund your next campaign, but not so much that the people refuse to vote for you.
In 2013, Lavabit — famous for being the privacy-oriented email service chosen by Edward Snowden to make contact with journalists while he was contracting for the NSA — shut down under mysterious, abrupt circumstances, leaving 410,000 users wondering what had just happened to their email addresses.
In 2015, Mark Zuckerberg (who insists that privacy is dead) bought 100 acres of land around his vacation home in Hawaii to ensure that no one could get close enough to spy on him.
You know as well as I that writing complex, long-long form text requires significant organization. You’re probably also well aware that Word just isn’t up to the task. That’s why I’m a huge fan of Scrivener, the software suite used by best-selling authors and technical writers alike.Scrivener is much more than another digital typewriter. With a […]
Looking to upgrade your weekend? Here are three randomly awesome products on my mind this week.#3 FRESHeBUDS Pro Magnetic Bluetooth EarbudsAs more and more phones and gadgets switch to Bluetooth-only compatibility, you’ll need to get Bluetooth headphones like the rest of us. I’ve been super impressed with these affordable magnetic headphones. Pull the magnetic earbuds apart to auto-connect […]
Traditional folding wallets are designed for paper bills—but these days, carrying cash is rarely a necessity. More often than not, I don’t carry cash at all. This Bogui Clik Wallet is the best answer I’ve found for avoiding the hassle of those tight-fitting credit card pockets.This attractive, minimalist wallet features a protective lip, so my cards don’t […]