This editorial raises the issue that China not only has cheaper labor costs, but, thanks to rampant piracy, hardly any factories pay for ERP, CAD/CAM, etc.
“In a U.S. factory like mine where engineers spend their days on a sophisticated work station with advanced industrial design software, the yearly cost to run software at a single station can cost $60,000,” Hollis says. “It can add up to millions a year and be a shop’s highest cost. Chinese factories pay nothing for that.”
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