Sunday, August 14, 2011

It Takes a Year to a Year and a Half

On CNBC this week, one businessman commented during an interview that "if you want to build a new house in California, the permitting process takes a year to a year and half." The situation is much worse if you want to construct a commercial building.

Given the half life of products these days (think how recently Iphone, Ipad, etc. have come to dominate our lives), any business wishing to move product in a hurry will do what Apple did -- have it manufactured in China.

It isn't realistic to expect a company like Boeing to get into a protracted multi-year argument with the National Labor Relations Board over whether or not they can locate a plant in South Carolina. Isn't it simpler to avoid that discussion entirely and to build the plant in China or Brazil or somewhere where government rules are not totally unreasonable?

The answer is obvious and points the way to the future.

No comments: