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Originally Posted by HeadPimp
Probably because the gomers at the cereal plant aren't making $50 an hour for $10 an hour work. Ever wonder why our labor jobs are going overseas? Take a look at the unions... I will step away from the rant now....  |
Labor is probably not a decisive cost factor in this comparison.
Total manufacturing cost must also reasonably amortize the fixed asset value and intellectual property behind the production facilities in each case. And, I can tell you for having visited a few General Mills plants when I was a banker, they are no less high-tech than auto plants.
I wouldn't be surprised if here, again, they were closer together than one would expect.
If you are a fan of Star Trek, or at least uphold the future of technology as Roddenberry predicted it, all manufacturing is evolving towards the Replicator Model -- which is simply: RAW MATERIALS GO IN -- IN ELEMENTAL FORM (CARBON, SILICON, IRON, ETC.) -- AND WHATEVER COMES OUT THE OTHER END IS SIMPLY A MATTER OF SOFTWARE.
This, obviously would establish a commodity market for raw materials on a global scale -- and, unless your product had really exotic ingredients (like Francium) the range of per pound retail prices for most things would begin to narrow.
j-