U.S. Wages Will Be 58 Times Indonesia’s By 2019

[Viet]

Interesting comparison: wages of vietnamese factory workers are expected to reach 67% level of china and 4.3 times higher than wannabe leader indonesia


U.S. Wages Will Be 58 Times Indonesia’s By 2019 - Bloomberg Business
Manufacturing wages in Indonesia, Vietnam and the Philippines will rise quickly, while staying well below China's

by Sharon Chen
4:12 AM CEST
April 6, 2015

An employee installs components onto refrigerators on the production line at the Sharp Corp. factory in Karawang, Indonesia.

Dadang Tri/Bloomberg


Factory workers in the U.S. will be paid 58 times those in Indonesia in five years, according to the Economist Intelligence Unit. If that seems like a big difference, consider this: U.S. wages are 76 times Indonesia’s today.

Hourly manufacturing wages in the U.S. will rise 12 percent to $42.82 by 2019, according to the EIU. While Indonesia's wages are forecast to increase at a much faster pace -- gaining 48 percent -- they would still only be 74 cents an hour in five years. That's way lower than China’s $4.79, Vietnam's $3.16 and the Philippines's $3.15.

Indonesia is trying to establish its manufacturing credentials in an increasingly competitive neighborhood, with countries including Vietnam and the Philippines also fighting to woo investors looking for alternatives to a pricier China.

Indonesia’s government has faced pressure to raise wages. Thousands of workers protested in Jakarta in December as part of a nationwide strike for higher pay after President Joko Widodo raised fuel prices.

The one factor in manufacturers' favor: the young populations in Indonesia, the Philippines and Vietnam may help keep a lid on wage growth.

“Manufacturing labor costs are already higher in China than in India, Indonesia and Vietnam -— countries often cited as well-placed to benefit from rising Chinese prices,” the EIU said in a report. “This disparity will widen further in the coming years, as wage growth in these countries is kept down by strong expansion in labor supply.”

That’s good news for Indonesia, if it can keep its workers happy.

U.S. Wages Will Be 58 Times Indonesia’s By 2019 - Bloomberg Business

 

[cnleio]

Do a simple count here ...

Chinese worker month salary = USD 4.79 (28.74 RMB) * 8 hours * 22 days = USD 843 (about 5,058 RMB) ?
Vietnamese worker month salary = USD 3.16 (18.9 RMB) * 8 hours * 22 days = USD 556 (about 3,336 RMB) ??
Philippines worker month salary = USD 3.15 (18.9 RMB) * 8 hours * 22 days = USD 554.4 (about 3,326 RMB) ???
U.S worker month salary = USD 42.82 (256.92 RMB) * 8 hours * 22 days = USD 7536.3 (about 45,217 RMB) ????

As a engineer, i spent time to visit many GuangDong facotries including small private factory or huge factory like Foxconn ... i disagree with wage data in this article. And without domestic hi-tech support, cheaper manufacturing labor is NOTHING ! There always has the cheaper one ...

Currently, manufacturing wages of Chinese worker on a produce line is about 2,000~3,000 RMB per month ... lower than that u can't hire anyone work for factory, even cleaner on the street can easily earn 2,000+ salary (dirty&hard ). In office, wage is double ~ quadruple times more than it.

Hourly manufacturing wages in the U.S. will rise 12 percent to $42.82 by 2019, according to the EIU. While Indonesia's wages are forecast to increase at a much faster pace -- gaining 48 percent -- they would still only be 74 cents an hour in five years. That's way lower than China’s $4.79, Vietnam's $3.16 and the Philippines's $3.15.

U.S. Wages Will Be 58 Times Indonesia’s By 2019 - Bloomberg Business

 

[initial_d]

Lol......lol.....lol...... It seems many of viet needs wet dream by jerking on broad day light......

 

[Beast]

wages is nothing if no infrastruture support and whole core facilities to make the whole manufacturing click.

Let me tell you a secret, the cheapest wages in whole planet is somalia. You can go try there and invest

 

[Nike]

he already had a wet dreams

it's already means, Indonesia had much more potential to become an industrial and manufacturing powerhouse in near future, given already low cost labor fee, even much potential than Vietnam

Not to mention, Indonesia had a much better service and infrastructure to serve the growing of industrial needs

 

[frequency]

Do a simple count here ...

Chinese worker month salary = USD 4.79 (28.74 RMB) * 8 hours * 22 days = USD 843 (about 5,058 RMB) ?
Vietnamese worker month salary = USD 3.16 (18.9 RMB) * 8 hours * 22 days = USD 556 (about 3,336 RMB) ??
Philippines worker month salary = USD 3.15 (18.9 RMB) * 8 hours * 22 days = USD 554.4 (about 3,326 RMB) ???
U.S worker month salary = USD 42.82 (256.92 RMB) * 8 hours * 22 days = USD 7536.3 (about 45,217 RMB) ????

As a engineer, i spent time to visit many GuangDong facotries including small private factory or huge factory like Foxconn ... i disagree with wage data in this article. And without domestic hi-tech support, cheaper manufacturing labor is NOTHING ! There always has the cheaper one ...

Currently, manufacturing wages of Chinese worker on a produce line is about 2,000~3,000 RMB per month ... lower than that u can't hire anyone work for factory, even cleaner on the street can easily earn 2,000+ salary (dirty&hard ). In office, wage is double ~ quadruple times more than it.

Average American workers dont make $7500/month. Not every engineers can do math properly.

 

[Aepsilons]

Average American workers dont make $7500/month. Not every engineers can do math properly.

It's pretty close tho, perhaps he meant gross pay not net pay. Where I live, in NJ, the average New Jerseyan makes around 70k a year, with NJ household income making well over 100k a year.

It's common for some people to be taking home $5000 every two weeks after taxes. Around $10,000 every month. That's not even rich, that's just middle to upper middle class from my point of view, and from where I live $5k every two weeks is not surprising.


@Peter C --- don't you agree? What's the average in Boston area?

Average American workers dont make $7500/month. Not every engineers can do math properly.

Do a simple count here ...

Chinese worker month salary = USD 4.79 (28.74 RMB) * 8 hours * 22 days = USD 843 (about 5,058 RMB) ?
Vietnamese worker month salary = USD 3.16 (18.9 RMB) * 8 hours * 22 days = USD 556 (about 3,336 RMB) ??
Philippines worker month salary = USD 3.15 (18.9 RMB) * 8 hours * 22 days = USD 554.4 (about 3,326 RMB) ???
U.S worker month salary = USD 42.82 (256.92 RMB) * 8 hours * 22 days = USD 7536.3 (about 45,217 RMB) ????

As a engineer, i spent time to visit many GuangDong facotries including small private factory or huge factory like Foxconn ... i disagree with wage data in this article. And without domestic hi-tech support, cheaper manufacturing labor is NOTHING ! There always has the cheaper one ...

Currently, manufacturing wages of Chinese worker on a produce line is about 2,000~3,000 RMB per month ... lower than that u can't hire anyone work for factory, even cleaner on the street can easily earn 2,000+ salary (dirty&hard ). In office, wage is double ~ quadruple times more than it.

Long term, China will remain the manufacturing source, it's not just affordability that catches the eye of company interest and quarterly reports. It's also China's level of infrastructure and processing Chain that reduces burden, overall it's good for ROI.

Second, China has modified it's corporate law and legal process to ensure investor confidence and reduction of corruption that has yet to be seen in other areas in ASEAN.

Third, China will remain the top offshoring source simply due to it's massive market where most of the goods will also be sold. Vietnam, Philippines , and to an extent Indonesia are great offshoring sites, however , China is a massive market that is unrivaled.

She's the ultimate "go to shop" so to say.

 

[Carlosa]

Do a simple count here ...

Chinese worker month salary = USD 4.79 (28.74 RMB) * 8 hours * 22 days = USD 843 (about 5,058 RMB) ?
Vietnamese worker month salary = USD 3.16 (18.9 RMB) * 8 hours * 22 days = USD 556 (about 3,336 RMB) ??
Philippines worker month salary = USD 3.15 (18.9 RMB) * 8 hours * 22 days = USD 554.4 (about 3,326 RMB) ???
U.S worker month salary = USD 42.82 (256.92 RMB) * 8 hours * 22 days = USD 7536.3 (about 45,217 RMB) ????

As a engineer, i spent time to visit many GuangDong facotries including small private factory or huge factory like Foxconn ... i disagree with wage data in this article. And without domestic hi-tech support, cheaper manufacturing labor is NOTHING ! There always has the cheaper one ...

Currently, manufacturing wages of Chinese worker on a produce line is about 2,000~3,000 RMB per month ... lower than that u can't hire anyone work for factory, even cleaner on the street can easily earn 2,000+ salary (dirty&hard ). In office, wage is double ~ quadruple times more than it.

I totally agree with your chinese factory salaries. The factories that I work with in the Shenzhen / Dongguang area have that salary scale of 2000 / 3000 RMB. The 3000 RMB figure already includes significant overtime. Skilled office workers make more.

In US many workers also have salaries starting with minimum wage of 7-8 dollars an hour.
Only a percentage of the population makes salaries of 70k and up. Just ask a worker at Mcdonal's, they make 9-10 an hour.

 

[Aepsilons]

I totally agree with your chinese factory salaries. The factories that I work with in the Shenzhen / Dongguang area have that salary scale of 2000 / 3000 RMB. The 3000 RMB figure already includes significant overtime. Skilled office workers make more.

In US many workers also have salaries starting with minimum wage of 7-8 dollars an hour.
Only a percentage of the population makes salaries of 70k and up. Just ask a worker at Mcdonal's, they make 9-10 an hour.

Also, Americans are notorious for their union strikes and protests. They get paid more and are less efficient.

China is better for large scale manufacturing companies. Why else would companies like Walmart offshore production in China?

 

[cnleio]

I totally agree with your chinese factory salaries. The factories that I work with in the Shenzhen / Dongguang area have that salary scale of 2000 / 3000 RMB. The 3000 RMB figure already includes significant overtime. Skilled office workers make more.

In US many workers also have salaries starting with minimum wage of 7-8 dollars an hour.
Only a percentage of the population makes salaries of 70k and up. Just ask a worker at Mcdonal's, they make 9-10 an hour.

Skilled worker in China factory can earn 5,000~6,000 RMB per month, few can reach 10,000 RMB if u good at opreating CNC digital machine tool.

Until to 2019, the salary might rise up ... if everything is fine, the reasonable is up to 4,000 RMB for a Chinese worker. That's my conclusion.

BTW what about current manufacturing wage for the Vietnamese worker per month 1,000 RMB ?

 

[Carlosa]

Also, Americans are notorious for their union strikes and protests. They get paid more and are less efficient.

China is better for large scale manufacturing companies. Why else would companies like Walmart offshore production in China?

And lets not even talk about OSHA standards, health insurance, workers comp, how easy it is to file lawsuits for just about anything, etc, etc.

Until to 2019, the salary might rise up ... if everything is fine, the reasonable is up to 4,000 RMB for a Chinese worker. That's my conclusion.

BTW what about current manufacturing wage for the Vietnamese worker per month 1,000 RMB ?

Vietnamese unskilled or low skilled factory worker salary range is from $150 - 300 per month. Most would be in the category of $150 - 200. Factory pay is very low.

 

[Aepsilons]

And lets not even talk about OSHA standards, health insurance, workers comp, how easy it is to file lawsuits for just about anything, etc, etc.

Absolutely ! There are just too many headaches for manufacturing to ever return to the U.S. know the end of the day what is 3000 RMB a month compared to paying a skilled American laborer $18-$20 an hour, plus health insurance ? So long as there's a cheaper source of labor then production will remain offshore.

 

[cnleio]

Vietnamese unskilled or low skilled factory worker salary range is from $150 - 300 per month. Most would be in the category of $150 - 200. Factory pay is very low.

Yes, the tech & skill is 1st important tool for a normal worker in the manufacturing factory ... both u and me knew the truth here ... coz we r familiar with the produce line and understand how it works.

More skill => more hi-tech produced => more beneifts earned => more pay for the worker.

 

[Carlosa]

Absolutely ! There are just too many headaches for manufacturing to ever return to the U.S. know the end of the day what is 3000 RMB a month compared to paying a skilled American laborer $18-$20 an hour, plus health insurance ? So long as there's a cheaper source of labor then production will remain offshore.

Let me tell you, I had a small company in USA for 17 years. The pressure from all those things mentioned before is not a little thing. You pray that you don't get hit with a workers comp lawsuit because just one thing like that can put you out of business.

Yes, the tech & skill is 1st important tool for a normal worker in the manufacturing factory ... both u and me knew the truth here ... coz we r familiar with the produce line and understand how it works.

More skill => more hi-tech produced => more beneifts earned => more pay for the worker.

Absolutely.

 

[Aepsilons]

Let me tell you, I had a small company in USA for 17 years. The pressure from all those things mentioned before is not a little thing. You pray that you don't get hit with a workers comp lawsuit because just one thing like that can put you out of business.

I understand . What's interesting is that as a business owner , if you ever terminate an employee who has been under your employ for at least 6 months then he or she can claim unemployment benefits which you as the business owner have to share said burden of cost. It's just insane ! That's one of the reasons small time to medium sized businesses in the US are suffering right now because of this policy.

And you'll have some folks who's claiming unemployment for years, and guess who's paying for that ? It's not all US Government, it's also the former employer.

Now you know why most US manufacturing went abroad, LoL