Manufacturing jobs keep coming back to the U.S.
Rapidly rising wages in China are changing the equation on where it makes sense to locate plants. Here’s what that picture looks like, in a comment from Mr. Bruce Cochrane, who opened up a furniture plant in North Carolina. The FT article says:
Not than anyone reading my blogs could do anything to influence what happens in China. However, we should pay attention because what happens there will affect all of us elsewhere.
Walter Russell Mead, at Via Meadia, is watching China, so it would be good to look at his blog, including a recent post, IMF: China Isn’t Ten Feet Tall.
The rapid growth of the Chinese economy, reported to be running at 9% for many years combined with the massive migration of people from farms to cities is astounding. If, or rather when, that massive growth slows the adjustments will be painful. Read more…
Walter Russell Mead is travelling in China. As all travelers know, this produces lots of insight. I still cherish the learning time I experienced during a number of overseas field audits for a client. But I digress.
In Chasing China Up The Food Chain, Mr Mead says:
The other day I was looking for a pair of gym shorts in Guangzhou and stopped at a sporting goods store. I found some — with a label proudly advertising “Made in Thailand.”
I’ve long read that manufacturers looking for the lowest cost are now building in Vietnam and Cambodia. That is a very serious problem for China.
The solution? Read more…