There have been several studies done recently by prominent consulting groups here in the United States, and quoting from a recent article published by THE BOSTON CONSULTING GROUP,
Chinese wages, higher U.S. productivity, and a weaker dollar, will virtually close the gap between U.S. and China for many goods consumed in North America.
How can this happen you ask?
U.S. companies should take a hard look at product-to-product analysis of their global supply chains to fully account for total cost. Many times U.S. manufacturers become more attractive when analyzing time to deliver, overall quality, and the ability to react quickly to customer needs.
Within the next 5 years there will be several key issues accelerating this transition:
#1 – Wage and benefit increases in the area of 15 to 20% per year for the average Chinese factory, which will slash the labor cost advantage.
#2 – Transportation duties, supply chain risks, real estate and other cost saving will become minimal, sending the advantage and attraction away from Chinese manufacturers.
#3 – Rising income levels in China and the rest of developing Asia will devote more capacity to the Chinese domestic market, thus sending the emphasis to purchase more U.S. products.
In conclusion, the worldwide manufacturing landscape is changing and Presco has committed our people, capabilities and equipment to further this cause and satisfy our current client and future client base with products made right here in the heart of Texas.
Today, Made in America has never meant so much and helps fulfill Presco’s commitment to being “Your First, Best Place to Buy and Our Last, Best Place to Work.”