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What makes low-volume American manufacturing uncompetitive is white-collar overhead and lead time, not the wage of the person running the machine.

Drawn from what Austin Vernon said

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AI and jobs Whether AI displaces human work, which jobs go first, and what replaces them.

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  1. Austin Vernon

    Engineer and investor who writes quantitative posts about…

    Long lead times and soft costs, fueled by the world-leading US wages for "white collar" work, are the root cause of poor performance in low-volume production because there are few units to spread the soft costs over.

Added to korrents 12 Feb 2026 · How quotes work · Something wrong? Tell us

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