U.S. Now Competitive With Chinese Manufacturing!

Let’s keep this going by “buying only  – Made in USA.”  Stop buying all of that CHEAPO stuff from China.  You pay for something that doesn’t last!

The once-huge gap between manufacturing costs in China and the United States has narrowed to the point where it’s barely cheaper to produce goods in China than here in America.

Manufacturing wages adjusted for productivity have nearly tripled in China over the last decade, from $4.35 an hour in 2004 to $12.47 an hour last year, according to the Boston Consulting Group.

In the U.S., manufacturing wages adjusted for productivity have risen less than 30 percent since 2004, to $22.32. But the higher wages for American workers are offset by lower costs for energy and raw materials.

The total cost to manufacture goods in China for every $1 required in the U.S. is now $0.96.

“Everybody believed that China would always be cheaper,” Harold Sirkin, a senior partner at Boston Consulting, told The New York Times.

“But things are changing even faster than anyone imagined.”

The U.S. is becoming more competitive with other nations as well. It now costs more than $1 to manufacture goods in Korea for every $1 required in the U.S., and between $1.10 and $1.20 in Canada, Sweden, Japan, and the Netherlands.

For every $1 required in America, it costs between $1.20 and $1.30 to manufacture goods in Germany, Italy, Brazil, Belgium, France, and Switzerland.

The only nations cited by Boston Consulting where it costs less than $0.90 to produce goods for every $1 required in the U.S. are now India and Indonesia.

The Times offered the example of the textile industry. Rising costs in China due to higher wages, energy bills and cotton prices have actually induced Chinese companies to open up textile mills in the U.S., where energy is cheaper, and employ American workers.

Last year it cost just over $1.50 to manufacture one pound of yarn in the U.S., compared to more than $2.00 in China.

The cost is also lower in the U.S. than in India, Brazil, Korea, Italy, or Egypt.

“Once the epitome of cheap mass manufacturing, textile producers from formerly low-cost nations are starting to set up shop in America,” The Times observed. “It is part of a blurring of once seemingly clear-cut boundaries between high- and low-cost manufacturing nations that few would have predicted a decade ago.”


About kommonsentsjane

Enjoys sports and all kinds of music, especially dance music. Playing the keyboard and piano are favorites. Family and friends are very important.
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