Even Better News: U.S. Costs are Expected to Be Lower by 2018
A Fortune magazine article reports that according to the Boston consultancy, BCG, the average cost to manufacture goods in the U.S. is now only 5 percent higher than in China. Additionally, U.S. manufacturing costs are 10 percent to 20 percent lower than in major European economies. Most eye-opening, BCG projects that it will be 2 percent to 3 percent cheaper to manufacture things here in the U.S. than in China by as early as 2018.
One reason for the projections is the fact that wages have been rising in China, and American counterparts are continually boosting their productivity much faster. Another major reason for the optimistic U.S. growth projection in manufacturing is that fracking has helped dramatically drive down the price of oil and gas that’s being used in energy intensive industries such as steel, aluminum, paper and petrochemicals. To read full article, click HERE.