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U.S. Manufacturing Making a Comeback

There has been recent chatter about a possible resurgence of American manufacturing. This is discussed in an article in the Washington Post. According to the article, American manufacturing is becoming more and more attractive to companies that are outside of the U.S., such as China. American companies that have been outsourcing production have also realized the appeal of bringing some operations back to the U.S. Reasons such as the high productivity of American workers, as well as higher shipping costs have both contributed to the appeal of U.S. production. The most significant factor, however, has to do with the change in the wage gap between the U.S. and China. The gap that used to be very large, at around $17 per hour, is now steadily shrinking. Analysts report that it may only be a $7 wage difference by 2015. Labor disputes and strikes have become more frequent in China, as factory workers keep demanding higher wages. As a result, many industries, such as plastic and rubber, machinery, electrical equipment, and computers are considering the switch from China, back to the U.S. 

One of the major questions that arise is whether or not this will have a positive effect on jobs in America. While there have been slight improvements in the number of jobs, it is nothing in comparison to the number that disappeared in the years before. However, it may just take time for there to be any significant improvement. In the meantime, the growing appeal of American production is promising for the future of this country’s economic progress and innovation.

 

Read the article here:

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/01/is-u-s-manufacturing-set-for-a-comeback-or-is-it-all-hype/

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