Sunday, September 21, 2008

Bringing them Back

I believe that Lee and Melanie both have good points, however, even though the majority of major manufacturers in the U.S. have already begun outsourcing almost all of their production to China, I do not see these jobs going anywhere else anytime soon. Granted that shipping costs continue to rise, it will still be cheaper to stay in an area where manufacturing has been established for several years. In the article we read about productivity growth in the U.S. has risen almost five percent in the last decade. That's great for the companies and manufacturers that are still in the U.S. Unfortunately for us, our Chinese competitors' growth in productivity has shot up some nineteen percent in the same amount of time. So, despite the outrageous shipping costs, the Chinese are producing the same goods they have already been producing for the past few years, now only more efficiently. If these major manufacturing contracts go anywhere outside of China I believe it will be another smaller asian country with cheaper wages and benefits than that of China. A major move back to the U.S. would involve too much risk and too much money.

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