Chapter 86: A Feast
There are actually two focuses for building factories. The first is to have a geographical advantage of being close to the source of raw materials. For example, Chicago is close to the largest iron ore mine in the United States, which has formed the current steel center. The Carnegie family, which started early, was squeezed out.
Another focus is that it is close to the market, and the products produced are easy to sell, which can also share the operating pressure. The later Republic market actually focused on the latter point. The products produced by the world factory must first meet their own needs, and then look for international sales.
There are more benefits to being able to produce by yourself. First of all, no matter what the quality is, it can always reduce some domestic costs. Poor quality is not allowed, otherwise it is really easy to get stuck.
Sheffield doesn't need to look for examples from the history of the Soviet Union or the Republic. Just think about it. Ever since Nokia's mobile phone was killed by a Trojan horse from Microsoft, the entire European mobile phone market has become a market where other mobile phone manufacturers collect IQ taxes.
The price is higher and the configuration is lower. Although the two major manufacturers VO have long been criticized for high prices and low configuration, in the European market, all mobile phone manufacturers are VO, and they all charge Europeans IQ tax. The reason is that after the collapse of the Nokia Empire, there is no mobile phone empire in Europe. Without self-production and demand, it will end up like this.
This is the rule of business. If you want to become strong, you must be better than others, otherwise you will be at the mercy of others.
Sheffield chose to start with agricultural machinery because the voice in agriculture in the United States lies in the South. He has this foundation. Even if he produces a pile of shit in the end, he can just use his own land as a test product. Anyway, his family has no shortage of land, and he has to maintain his own production and sales.
After consulting with representatives of the Ruhr area, Sheffield finally decided to abandon the idea of buying land in the North, stick to the bottom line of Dixie, and build the envisioned factory in Texas.
"Why build it in the south? The north obviously has better conveniences!" Hans and others did not understand this move.
"Because the market is in the south, and maybe the west as well, I need to expand the market faster, so I need to be closer to the market, which is more convenient. As for the raw materials, it is actually similar. The distance of transporting raw materials from the north for production and from the north to the south after production is the same. In addition, I also need to take into account the feelings of the southern citizens."
Sheffield turned a deaf ear to this well-intentioned reminder. Since the two plans for setting up the factory each had their pros and cons, Sheffield naturally could not go against the interests of the Dixie people. The Yankees in the north might not thank him if he set up a factory. It didn't matter who he gave the job to, why give it to these bastards.
"Of course, your idea is not wrong, but our German layout relies on the Ruhr area. The situation is the same in all countries. It is normal for Mr. Sheffield to have his own considerations." The representative of Thyssen United Company gestured to the other Germans, indicating that they should stay calm and not dwell on this matter anymore.
Even if we die of starvation or jump off a building, we will take the Yankees with us! How can you Germans understand the love and affection we have as a family in the United States?
"The principle of proximity to resources certainly has its own advantages, but it depends on the specific situation. The market is also very important. For us in the United States, the situation is slightly different from that in the German Empire." Sheffield also respects these foreign technicians. Germany's Ruhr area is indeed a typical industrial area that follows the principle of proximity to resources.
The distribution of heavy industry in the Soviet Union in later generations was actually the same, as well as in the Northeast of the Republic. This layout is actually very suitable for the layout of heavy industry, and is especially suitable for placing industries that are the backbone of the military. The layout of the military industry can avoid shortcomings to the greatest extent. After all, the military industry and the civilian industry are different, and the former has its own characteristics.
The most feared thing about the country is the international trade and the globalization in the future. Because even if a country is rich in resources, it cannot be compared with the whole world. Your domestic iron ore is not bad, but Australia's iron ore is buried shallower and of higher quality. You have a lot of oil, and Saudi Arabia not only has more than you, but also cheaper than you, which is very embarrassing.
The globalization of later generations directly turned the northern industrial areas of the United States into the Rust Belt. If you want to restore this Rust Belt, the best way is actually to go to war. Once the war comes, these industrial areas will only restore their previous prosperity, and it must be a large-scale war. Small-scale wars will not work, and these industrial areas can only barely maintain themselves.
While Sheffield had secured a foothold in industry, a storm was brewing in the political arena, which escaped the attention of most U.S. citizens.
Of course, in the eyes of ordinary citizens, this was just a spring breeze, seemingly having nothing to do with them. But in the eyes of some people involved, this was an unprecedented storm, including Sheffield, Rockefeller Jr. and many others who were holding their breath, waiting for the final moment to come.
Even those who are not in the industrial field, Boston bankers and New York bankers, are sitting upright, waiting for news from the Senate and the House of Representatives. This patent bill can determine many things, not just in the industrial field.
Sheffield, standing by the window of the three-story building of the Illinois Farmers and Stockmen's Association, had no idea how many times he had taken out his pocket watch from his chest pocket. The tension under his calm face was obvious, and his other hand kept performing meaningless activities, like the behavior of an alcoholic.
A rapid phone call startled Sheffield so much that he almost jumped up. John Connor picked up the phone and listened. He said to Sheffield respectfully, "Master William, it's you who's calling you."
"William Sheffield!" Sheffield held the phone with his neck, his eyes never leaving the pocket watch he had taken out for who knows how many times, watching the second hand on it tick by one second at a time.
"William, the cross-review of the Senate and the House of Representatives has been passed, and now we are waiting for President Cleveland's approval!" Sheffield heard a sense of relief from Rockefeller Jr.'s tone.
On the other end of the phone, Rockefeller Jr. poured himself a glass of red wine as a reward and said with a smile, "Many friends are very happy. This means a new rule has been established. Come over tonight and let's talk about it?"
"Okay!" Sheffield put down the phone and put the pocket watch into his pocket. His face was full of pain as if he was trying not to laugh out loud. In the end, he couldn't help but yelled wildly, "Haha, pick out the patents for me right now, starting with the movie patents, and sue them into bankruptcy!"
This will be an unprecedented feast. Sheffield suddenly remembered a sentence in the textbook: In the late nineteenth century, capitalist countries entered the imperialist stage one after another.
(End of this chapter)
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