DO YOU SPEAK ENGLISH?
Over the past few weeks I have had to make a few calls to customer service representatives from various companies and also their technical support staffs. One thing that I have found in common with these companies is the fact that these personnel manning these phone lines are not from the United States and have a very limited mastering of the English language.
One company had Hispanics manning their lines, so with my limited and very rusty Spanish speaking abilities I attempted to convey my subject of concern to them. This frustrated them in much the same way as it frustrated me when they were speaking English.
After going through this a few times, I began to question why would a company hire so many limited English speakers to take care of its customer service and technical support. Well after researching this some I have come to find that these people are not hired by the companies. These people actually work for a separate company contracted to do all of this business.
The core of the matter is money. It is cheaper for a mainstream company to forward the calls overseas to these companies and have them conduct the customer service and technical support rather than hire their own staff and conduct the business here in the United States.
This just goes to the fact that when I hear things like, “Buy things made in America,” “Everything is made some where else”, and “You can’t buy anything that is not made in Taiwan.” Now if you want reasons look in the mirror. Though it would be great if we the United States could be self reliant, we have come to the point that we cannot, because the high amount of wages we as Americans demand.
In March I had done a fair amount of research for a PowerPoint presentation for my brother’s fiftieth birthday. One of the points that I researched was the changes in the economy. In 1956 here in the United States the average salary was $5,300 and the federal minimum wage was $1.00 an hour. Accordingly the average costs in the United States were: Milk $.97, Stamps $.03, a house $17,800, a car $2,100, and bread $.18 a loaf.
Included in this presentation were the facts of today’s economy. Here in 2006 the average salary is $85,000 and minimum wages are set by States where the amounts are all above $5.00 an hour. Accordingly milk costs $3.29 a gallon, Stamps $.39, a house $217,000, a car $32,000 and bread $1.18 a loaf.
Now let us look at the states of other countries economies. From our southern border with Mexico on down to Argentina average salaries probably are in the $10,000 and below bracket. Then over the big ponds you have countries like Korea, China, India, Pakistan again average salaries are in the $10,000 and below bracket.
Now imagine yourself as a company and need to establish a plant with 500 workers. If you decide to start the plant here in the United States just the labor for a year will cost approximately $42,500,000. This is just labor and does not include site procurement, building and taxes. You also now have the choice of going outside the US to let us say Ecuador. Your 500 workers now cost you approximately $5,000,000. Along with this figure the site procurement, construction, and tax costs will also be considerably less.
Now figure that when the goods produces when sold will bring in a profit of $100,000,000 (Before paying labor but all other operating costs are paid.) Here you stand to make a profit margin of $95,000,000 with labor outside the US or $57,500,000 here in the good ol USA. Which one would you choose for your profit? Now answer your question why is everything made in Taiwan.
One other note that I would like to make. If you choose to move to Mexico after you retire you can rent a 3 bedroom house on the beach with a pool, utilities included, and your choice of a maid or a gardener for $400 a month. Try to find something comparable here in the US and you will be paying thousands.
One company had Hispanics manning their lines, so with my limited and very rusty Spanish speaking abilities I attempted to convey my subject of concern to them. This frustrated them in much the same way as it frustrated me when they were speaking English.
After going through this a few times, I began to question why would a company hire so many limited English speakers to take care of its customer service and technical support. Well after researching this some I have come to find that these people are not hired by the companies. These people actually work for a separate company contracted to do all of this business.
The core of the matter is money. It is cheaper for a mainstream company to forward the calls overseas to these companies and have them conduct the customer service and technical support rather than hire their own staff and conduct the business here in the United States.
This just goes to the fact that when I hear things like, “Buy things made in America,” “Everything is made some where else”, and “You can’t buy anything that is not made in Taiwan.” Now if you want reasons look in the mirror. Though it would be great if we the United States could be self reliant, we have come to the point that we cannot, because the high amount of wages we as Americans demand.
In March I had done a fair amount of research for a PowerPoint presentation for my brother’s fiftieth birthday. One of the points that I researched was the changes in the economy. In 1956 here in the United States the average salary was $5,300 and the federal minimum wage was $1.00 an hour. Accordingly the average costs in the United States were: Milk $.97, Stamps $.03, a house $17,800, a car $2,100, and bread $.18 a loaf.
Included in this presentation were the facts of today’s economy. Here in 2006 the average salary is $85,000 and minimum wages are set by States where the amounts are all above $5.00 an hour. Accordingly milk costs $3.29 a gallon, Stamps $.39, a house $217,000, a car $32,000 and bread $1.18 a loaf.
Now let us look at the states of other countries economies. From our southern border with Mexico on down to Argentina average salaries probably are in the $10,000 and below bracket. Then over the big ponds you have countries like Korea, China, India, Pakistan again average salaries are in the $10,000 and below bracket.
Now imagine yourself as a company and need to establish a plant with 500 workers. If you decide to start the plant here in the United States just the labor for a year will cost approximately $42,500,000. This is just labor and does not include site procurement, building and taxes. You also now have the choice of going outside the US to let us say Ecuador. Your 500 workers now cost you approximately $5,000,000. Along with this figure the site procurement, construction, and tax costs will also be considerably less.
Now figure that when the goods produces when sold will bring in a profit of $100,000,000 (Before paying labor but all other operating costs are paid.) Here you stand to make a profit margin of $95,000,000 with labor outside the US or $57,500,000 here in the good ol USA. Which one would you choose for your profit? Now answer your question why is everything made in Taiwan.
One other note that I would like to make. If you choose to move to Mexico after you retire you can rent a 3 bedroom house on the beach with a pool, utilities included, and your choice of a maid or a gardener for $400 a month. Try to find something comparable here in the US and you will be paying thousands.
posted by SOLOFLYER at 5:19 AM
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