#1 – Everyone agrees that labor is so inexpensive.
True.
BUT
This is only applicable to labor-intensive products. This is only for parts made of steel that must be formed, bolted or screwed together. There are many fasterners that can be done manually.
The Electronics can’t be assembled by hand, other than being put in a plastic bag and placed in a box. It took 30 seconds of manual labor ??????? at $1.00 an hour?
Automation is used to build electronics, exactly the same automation that we use in the USA.
The components are what really cost. They have lower standards of safety and health than the rest.
They are proud to say that their facilities exceed ISO 9001-2015, AS 9100D and ISO 13485 ETC .
They are therefore subject to international scrutiny to ensure that they meet the highest standards for end assemblies.
They are still cheaper than the alternatives, so why not?
These components can be found in Asia, Thailand, Indonesia and Vietnam.
Prices do not include shipping or duties. They may also buy entire years’ supply if they purchase from a factory. A few thousand may be enough for a company in the USA, but not many million.
Take a look at the TV Remote that Spectrum/Time Warner has. These items are almost free. These items cost about $2 The batteries are included. It is cheaper to dispose of them. They are too common. In high volumes, even molded plastic cases cost only a few pennies.
A 42″ LCD TV I found at Walmart was $35. They are likely bought by Walmart for $16, and delivered directly to their doors. This TV cost less than $8.00, excluding the tariff, duties and shipping fees. Someone was still making money.
It is important to experience it yourself, just as I did.
I was in a factory that had state-of-the-art equipment from all over the globe, including the USA. Production area of 1 million square feet. They have 20,000 employees and a fire department.
Based on my inspection, the facility was almost hospital-quality. It was used to produce electronics, including LCD TVs and other products. It was constructed in under 2 years and was managed by a Hong Kong company.
Pretene was everywhere on the grounds, with flowers all over, trees, bushes, and grass.
Because labor was so cheap, they used power lawnmowers and edgers. It was almost impossible to do anything by hand.