By 2015, Manufacturing in China Will be as Costly as US

[bjl584]

http://www.cnbc.com/id/100651692

"China is no longer a slam dunk for manufacturers looking for the lowest cost for operations.

In fact, a new study by the consulting firm AlixPartners estimates by 2015 the cost of outsourcing manufacturing to China will be equal to the cost of manufacturing in the U.S."

[disneysteve]

There is an article in TIME this week about a manufacturing resurgence in the US, partly driven by rising labor costs in China. The article points out, though, that this resurgence won't create as many jobs as one might hope because of increasing technological advances that allow for greater productivity with fewer workers. Also, that demands more skilled workers with college and even advanced degrees which doesn't help the population that previously held many factory jobs. The days of someone finishing high school (or not) and getting a life-long position at the local mill are long gone.

[GrimJack]

It is a pattern that is pretty obvious - we outsourced to Japan and they got too expensive so we outsourced to Korea and they got too expensive, we outsource to China.... I am betting on Vietnam as the next on the list.

[disneysteve]

It is a pattern that is pretty obvious - we outsourced to Japan and they got too expensive so we outsourced to Korea and they got too expensive, we outsource to China.... I am betting on Vietnam as the next on the list.

What's actually happening is companies bringing the work back to the US. Not only that, but foreign companies are setting up shop here like Rolls Royce and VW.

[Tonyall]

I was doing a business offering sourcing from China. I gave up a few years ago as the increasing costs for China were making the profit margins too slim. I'm not surprised it is going this far.