Manufacturing behemoths

[BananaRepublicUK]

We all know China has thousands of mega factories I.e. those that employ thousands of people.

In the last decade, under Hasina’s stewardship, Bangladesh has opened 100s of factories that employ thousands of people.

However, I am not aware of many Indian factories that employ thousands of people. India’s manufacturing is dominated by the “informal sector” - to escape militant trade unions and punitive taxes.

And I am not aware of any Pakistani factories that employ thousands of people. Please send link if you have any.

@UKBengali being the resident economics expert - do you think we have the land to open thousands of mega factories?

 

[UKBengali]

We all know China has thousands of mega factories I.e. those that employ thousands of people.

In the last decade, under Hasina’s stewardship, Bangladesh has opened 100s of factories that employ thousands of people.

However, I am not aware of many Indian factories that employ thousands of people. India’s manufacturing is dominated by the “informal sector” - to escape militant trade unions and punitive taxes.

And I am not aware of any Pakistani factories that employ thousands of people. Please send link if you have any.

@UKBengali being the resident economics expert - do you think we have the land to open thousands of mega factories?

Factories themselves do not take too much land as a single one could employ 10,000 people or more.

Walton currently employs 30,000 people on their site of 350 hectares. It is building a 2nd smaller site that will employ another 15,000 people by 2026 if my memory serves me correctly.

So using Walton we need around 100 hectares of land to employ 10,000 people and that is just 1 square km.
A million people would need just 100 square kms of land on this basis.

In answer to your question, even densely populated BD has ample land as it tends to build large factories, whether they are in garments or electronics.

 

[BananaRepublicUK]

Factories themselves do not take too much land as a single one could employ 10,000 people or more.

Walton currently employs 30,000 people on their site of 350 hectares. It is building a 2nd smaller site that will employ another 15,000 people by 2026 if my memory serves me correctly.

So using Walton we need around 100 hectares of land to employ 10,000 people and that is just 1 square km.
A million people would need just 100 square kms of land on this basis.

In answer to your question, even densely populated BD has ample land as it tends to build large factories, whether they are in garments or electronics.

Mega factories need four things:

1. Abundant (10s of millions of people) supply of cheap labour.

2. No more than 150 miles from port.

3. Access to cheap and reliable supply of power.

4. Lots of land.

Except land - Pakistan is at a huge disadvantage.

India’s cheap labour is in the cowbelt. 1000 miles away from ports. India’s Freight equalisation law just puts states like West Bengal at a disadvantage without helping the cowbelt. It is a crap law with unintended consequences.

Cheap hydro power from Nepal and India’s Seven Sisters - should improve BD’s power capacity.

In summary, Bangladesh is well positioned to capture 25-30 per cent of Chinese sunset industries.

Which will be more than enough to take BD to 12000 dollars PPP.

Endemic poverty is only alleviated at 10 dollars. So, we must hit 12000 dollars.

 

[epebble]

However, I am not aware of many Indian factories that employ thousands of people. India’s manufacturing is dominated by the “informal sector” - to escape militant trade unions and punitive taxes.

So, Tata produces steel, cars and trucks in cottages? Mahindra's tractors in backyards? Reliance petrochemicals in kitchens?

 

[BananaRepublicUK]

So, Tata produces steel, cars and trucks in cottages? Mahindra's tractors in backyards? Reliance petrochemicals in kitchens?

Dude!

I didn’t say India didn’t have any mega factories.

I asked do you have many I.e. 100s if not thousands. Remember, you have 1.4 billion people.

It’s a discussion forum.

Enlighten me!

 

[UKBengali]

Mega factories need four things:

1. Abundant (10s of millions of people) supply of cheap labour.

2. No more than 150 miles from port.

3. Access to cheap and reliable supply of power.

4. Lots of land.

Except land - Pakistan is at a huge disadvantage.

India’s cheap labour is in the cowbelt. 1000 miles away from ports. India’s Freight equalisation law just puts states like West Bengal at a disadvantage without helping the cowbelt. It is a crap law with unintended consequences.

Cheap hydro power from Nepal and India’s Seven Sisters - should improve BD’s power capacity.

In summary, Bangladesh is well positioned to capture 25-30 per cent of Chinese sunset industries.

Which will be more than enough to take BD to 12000 dollars PPP.

Endemic poverty is only alleviated at 10 dollars. So, we must hit 12000 dollars.

Also the 2nd nuclear power plant will come online by 2030. I think this one will be 4 x 1200MW reactors for a total capacity of 4.8GW.

Hydroelectric from Nepal and Bhutan will also have an advantage in help uplifting the economies of these 2 states and in Nepal's case provide a pretty prosperous 40+ million market for BD to push it's electronics, pharma, IT services and processed foodstuffs.

That road,rail and bridge infrastructure that the trolls keep whining(external debt) about is also going to come in very useful to allow goods to be shipped into and out of these factories quickly and easily.

I am not sure whether BD can capture 20-25% of these industries but even 10-15% would be enough to propel BD to "middle-income" status. The most important thing is that most of these factories are constructed by BD companies and not be built by MNCs as FDI.

 

[epebble]

Enlighten me!

Google is your friend

 

[UKBengali]

Google is your friend

Think you missed the detail in his post.

BD tends to build much larger factories when compared to India - its garment factories employ thousands when Indian ones usually are in the hundreds.

Yes there are a huge Indian factories that employ many thousands but they are the exception rather than the norm as in BD.

 

[BananaRepublicUK]

Google is your friend

So, not many then

 

[epebble]

BD tends to build much larger factories when compared to India - its garment factories employ thousands when Indian ones usually are in the hundreds.

Yes, the difference is due to productivity. Steel, trucks, petrochemicals, space vehicles have different manpower needs and skills from garment factories. I bet Intel and Boeing employ far fewer people than many giant garment factories. You should see videos of Intel fabs and Boeing assembly facilities, they look so empty, with barely a few hundred workers.

 

[BananaRepublicUK]

Yes, the difference is due to productivity. Steel, trucks, petrochemicals, space vehicles have different manpower needs and skills from garment factories. I bet Intel and Boeing employ far fewer people than many giant garment factories. You should see videos of Intel fabs and Boeing assembly facilities, they look so empty, with barely a few hundred workers.

These high tech industries do not lift a country out of poverty.

In fact, they create poverty.

Classic examples are: U.K. and USA.

Both countries lost its mid to low skilled manufacturing to China.

And now have massive and endemic poverty in its ex manufacturing hubs.

These high tech industries do not lift a country out of poverty.

In fact, they create poverty.

Classic examples are: U.K. and USA.

Both countries lost its mid to low skilled manufacturing to China.

And now have massive and endemic poverty in its ex manufacturing hubs.

Just to add…

High population countries should focus on labour intensive industries.

And low population countries should focus on high tech.

 

[UKBengali]

Yes, the difference is due to productivity. Steel, trucks, petrochemicals, space vehicles have different manpower needs and skills from garment factories. I bet Intel and Boeing employ far fewer people than many giant garment factories. You should see videos of Intel fabs and Boeing assembly facilities, they look so empty, with barely a few hundred workers.

BD's Walton has a huge single complex that employs 30,000 people in total. TVs, fridges etc are being designed and built in this site.

It will also build another site with a 15,000 workforce.

No the difference is not due to productivity as when you compare like for like, BD factories tend to be much larger than Indian ones.


PS - Who told you that Boeing factories only employ a few hundred workers when in fact we are talking about 30,000 employees just at its Everett site?

These high tech industries do not lift a country out of poverty.

In fact, they create poverty.

Classic examples are: U.K. and USA.

Both countries lost its mid to low skilled manufacturing to China.

And now have massive and endemic poverty in its ex manufacturing hubs.



Just to add…

High population countries should focus on labour intensive industries.

And low population countries should focus on high tech.

There needs to be a balance.

BD was right to start to garments at the low end and is now branching into medium tech with electronics, pharma, IT etc.

 

[Indos]

BD was right to start to garments at the low end and is now branching into medium tech with electronics, pharma, IT etc.

Britain gets rich due to its garment factory during industrial revolution. The reason they colonize South Asia is due to get the source of cotton and secure the supply chain of their textile industry

 

[epebble]

PS - Who told you that Boeing factories only employ a few hundred workers when in fact we are talking about 30,000 employees just at its Everett site?

I have been there and seen. A lot of people are needed for design and engineering. Fewer for assembly. The most expensive 'tools' for Boeing are computers and software. Their most expensive 'workers' are the Ph. D.s who build and run computational fluid mechanics models.

 

[UKBengali]

I have been there and seen. A lot of people are needed for design and engineering. Fewer for assembly. The most expensive 'tools' for Boeing are computers and software. Their most expensive 'workers' are the Ph. D.s who build and run computational fluid mechanics models.

Do you think a factory's workforce is just the people who assemble the parts?