Made in America: The 33 Cent Chinese Arkansas T-Shirt

Posted on October 3, 2017

Recently my colleague Marco Chan shared an extraordinary story that puts a new slant on the public discussion about robotics, China, outsourcing and the future of jobs.  According to this Bloomberg Business Week story,  a Chinese manufacturer, Tianyuan Garments Co., is investing $20 million to open a plant in Little Rock that will utilize robots developed by a Georgia company, Software Automation, to manufacture T-Shirts at a cost of 33 cents per shirt.  Each SEWBOT™ workline is capable of spitting out a T-Shirt every 26 seconds.  Human workers don’t stand a chance against such competition, no matter how low a wage rate they are willing to accept.

We’re in a period of profound change as digital technologies promise to transform virtually every industry globally.  In manufacturing this rapidly accelerating transformation will impact employers and employees alike.  PWC recently estimated that 38% of U.S. jobs could be taken by robots by 2030.  Futurists like Martin Ford and even well-known industrialists like Elon Musk have begun to argue that we need to consider adoption of a Universal Basic Income to address a world in which machines and artificial intelligence have replaced human beings in a large part of the economy.

For those that fear the consequences of automation, the connection has been broken between technological advance and the creation of new higher skilled jobs categories to replace the old lower skilled jobs.  I have more confidence that a dynamic economy will continue to provide opportunities for our citizens, creating currently unimaginable job categories for those willing and able to adapt.  Lifetime learning has become a survival skill in our society, opening up new business opportunities in education and training and likely creating hundreds of thousands of jobs in the process.

At the FOCUS Investment Banking Advanced Manufacturing & Automation Team we spend our time addressing … read the rest