U.S. On The Verge Of ‘Manufacturing Renaissance’
The United States is poised to become a low cost location for manufacturing according to The Boston Consulting Group.
The Boston Consulting Group (BCG) predicts that reinvestment during the next five years could lead to a ‘manufacturing renaissance’ in America. BCG states that some states in the U.S. are likely to become the cheapest locations for manufacturing in the developed world, due to a shrinking wage gap with China, more government incentives, new U.S. technology concepts, and highly skilled workers. BCG notes that:
With Chinese wages rising at about 17 percent per year and the value of the yuan continuing to increase, the gap between U.S. and Chinese wages is narrowing rapidly. Meanwhile, flexible work rules and a host of government incentives are making many states—including Mississippi, South Carolina, and Alabama—increasingly competitive as low-cost bases for supplying the U.S. market.
Producing goods in the U.S. could become much cheaper than shipping them from abroad and many American companies are rethinking their production locations and supply chains. As a result, a lot more products are going to be labelled ‘Made in the USA’ in the next five years.