Siemens’ U.S. President On Innovation

High-end products require skilled workers, precision assembly, intensive research, and complex technology.  If you’re in the business of building high-technology products, the wage rates you pay are usually a much less significant line-item on your income statement.  That’s especially true when you consider that U.S. workers are, on average, three times as productive as Chinese workers.   Together, this makes it possible to build them in America, as cost-competitively as anywhere else, because access to innovators is far more important than access to cheap labor.

The labor costs overseas have risen…the argument has to go beyond cheap labor.