Higher Chinese labor costs point to U.S. manufacturing renaissance

Filed under Manufacturing

As labor costs in China increase, some experts are predicting U.S. manufacturing that has been outsourced will return to the United States in the coming decade, according to a Wall Street Journal analysis piece. Annual wage growth in some Chinese industrial sectors is 15 percent or greater, and some management salaries in China now match those in the United States, the article said.

By 2015, the Boston Consulting Group said, labor-related manufacturing costs in China will be about 44 percent of that in the United States, up from 22 percent in 2005. Meantime, productivity improvements at U.S. plants mean many are producing double the output they used to, which is also helping to close the price gap with China, sources quoted in the story said.

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