The chinese are offshoring their work to find cheaper labor…
The market leading computer manufacturer Foxconn is planning a new $1 billion facility in Indonesia.
The new manufacturing plant will create around 1 million jobs in the region. Foxconn is currently discussing its plans with the Indonesian Ministry of Industry.
Foxconn already operates several manufacturing plants in China and Brazil, where it assembles electronic goods for many of the world’s biggest technology companies.
In a statement released yesterday, the company says it was attracted to Indonesia over Malaysia and Vietnam due to its high rate of economic growth – around 6 per cent a year. It also noted that the region is “sorely in need” of formal jobs, giving it a large workforce used to wages of around $100 a month.
Amazon.com added 9,400 employees to its payroll in the quarter ended March 31. That’s the biggest single quarter of headcount growth in Amazon’s history.
The company now employs 65,600 full- and part-time workers worldwide.
With its current trajectory, Amazon is rapidly approaching Microsoft in size. Microsoft employs more than 93,000 but hasn’t been growing as quickly as in the past. More than 40,000 of Microsoft’s employees are in the Seattle region; Amazon doesn’t break down its employment by region.
In February, 2012, Amazon purchased 3 million square feet of office space in Seattle, that would more than double their existing office space of 2 million square feet:
In one of Seattle’s biggest real-estate deals in years, fast-growing Amazon.com has agreed to buy three blocks in Seattle’s Denny Triangle — and preliminary paperwork has been filed with the city to build a 1 million-square-foot office tower on each of them.
The deal includes options for Amazon to buy even more of Denny Triangle holdings.
“In terms of economic development and new jobs for Seattle, this is off the charts,” Al Clise said.
Though, it’s possible that Amazon is ramping up in another area, secretly, as they have been known to do.
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On another note, I tried to find perspective on the size of these companies. I found that, according to reports (pdf), the total size of the tech industry in United States is 4.15 million. Which is an all-time high for the industry bouncing back from 2008, the last time numbers were this good.
I also found that Foxconn and it’s parent company employ 836,000 workers, third largest in the world, and IBM employs 427,000, tenth largest in the world.
The largest private employer in China, Foxconn with over 1 million employees, is finally facing stiff labor costs. This is great news for the U.S. manufacturing sector who may be able to lure some work back to the United States.
It will be interesting to see how this affects the global market, but for now the advantage is all for the robots:
Taiwanese technology giant Foxconn will replace some of its workers with 1 million robots in three years to cut rising labor expenses and improve efficiency, said Terry Gou, founder and chairman of the company, late Friday.
The robots will be used to do simple and routine work such as spraying, welding and assembling which are now mainly conducted by workers, said Gou at a workers’ dance party Friday night.
Foxconn, the world’s largest maker of computer components which assembles products for Apple, Sony and Nokia.