Some of the end customer is more enlighten today

We are all children of our time and I do not judge CEOs or CFOs who saw, quite rightly, Wright's Law as a justification for moving manufacturing from high-wage countries to low-wage countries.

For several decades, the advantage of being able to manufacture more products at a lower manufacturing cost was decisively greater than increased costs for quality control, shipping, piracy, etc.

With the pandemic, shipping costs have risen significantly. This, in combination with an increased demand for products manufactured outside China from some of the end consumer, I hope contributes to the rest of the world picking up much of its manufacturing again.

Companies that keep their manufacturing in China needs to tread carefully. Keeping the manufacturing in, for example, China because the manufacturing cost is ¢50 instead of $1 on a product that the end customer pays $35 can backfire. The line between improved profitability and greed can be very subtle.

"Wright's law aims to provide a reliable framework for forecasting cost declines as a function of cumulative production. Specifically, it states that for every cumulative doubling of units produced, costs will fall by a constant percentage." Theodore Wright (1895-1970)