"Made in USA" Challenging the "Made in China", Do U BELIEVE

The sharp rise in wages and rising energy costs causing the competitiveness declining, China, once known as the "world factory", starts behind in the global manufacturing.

According to the latest data released by the Boston Consulting Group, China's manufacturing price advantage over US is gradually disappearing, other competitiveness-declining countries include Brazil, Russia, the Czech Republic and Poland.

On the contrary, due to moderate wage growth and energy prices decline, the United States and Mexico has become more popular in the manufacturing origin. The next few years there will be more and more U.S. companies choosing to produce the product in the local vicinity. 

Recent U.S. economic data also proved this point. Last week, the United States announced industrial output in July rose 0.4 per cent. The manufacturing output in July rose 1 per cent.

China's wage costs are soaring. In 2000, the labor cost in the manufacturing sector in Mexico is about twice that in China. But since 2004, China's wage costs have risen five times, while Mexico increased by only 67%. 

Rising energy costs also eroded the competitiveness of China's manufacturing industry. According to Boston Consulting Group, from 2004 to 2014, China's industrial electricity costs increased by 66%, Russia increased by 132%; China natural gas costs surged about 138%, Russia increased by 202%.

Although Russia is a major exporter of natural gas. Shale gas production in US rose sharply, pushing down the U.S. energy prices. In contrast, Russian still relies on traditional natural gas, and gas prices rose sharply. 

American manufacturing back to US is not just a matter of wage and energy cost, logistics and a good business environment are also important factors. In addition, product quality is easier controlled.

It was reported by the Boston Consulting Group in 2012, with the American Enterprise re-estimating the product cost in China, some of the industry will reach a critical point in about 5 years, then they will begin to shift manufacturing to US. These industries include computers and electronics, home appliances and electrical equipment, furniture, truck accessories, bicycles and other transportation products. In these industries labor costs account lower and transportation costs account higher, so they may first start the domestic transfer. (More Internet Info plz enter chinainout.com)