Tuesday, November 27, 2012

Can U.S. Manufacturing Overcome The Chinese In World Markets?

These inquiries grew in number and it was learned that many of these companies decided to consider Mexico over China due to rising labor costs, ever increasing shipping costs, language barriers and lack of quality control.

As time passed the inquiries have lessened and based on my personal investment and business interest research it would seem that there is an emerging level of interest and profitability to 're-shore' manufacturing to the USA.

More evidence of this is described in an article that although it was first written in July 2012, it has just been re-posted in the ThomasNet.com e-newsletter received today - the article begins with the following -

Chinese companies have been taking larger shares of the global manufacturing market, outpacing many of their U.S. counterparts primarily due to lower operating expenses and favorable labor costs

Yet many of China’s advantages are eroding while U.S. manufacturing is becoming more competitive, meaning that the scales may soon tip in favor of American industry is titled - Can U.S. Manufacturing Outcompete China? 

If the US government can become more business friendly (if that is possible?) and realize that it is indeed "businesses" that create "REAL" jobs and not the government then we may actually see a resurgence in USA manufacturing in the years ahead.

In addition to the problems cited above that US manufacturers faced with Chinese manufacturing, there is now actually a surplus of cheap natural gas which will also help keep the cost of production down from US factories.

There is a definite trend here that should not be ignored by anyone involved in international trade or interested in entering this field of global business.  Assisting the new manufacturers and re-shored manufacturers in marketing their products to the world can potentially be a business that will be in demand - Soon!

Ron Coble
Coble International

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Anonymous Jerry Hingle said...

One can only hope that the scales tip sooner rather than later.

8:26 AM  
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