Sunday, October 9, 2011
Jobs Come Back from China
This article observes a trend in manufacturing: some jobs that have been outsourced to China are coming back to the U.S. One of the people interviewed is building a furniture plant in North Carolina, which used to be a center for furniture production but has diminished recently as those jobs have gone to Chinese factories. The most important force at work here is rising inflation in China. Wages and prices are both rising, and because the Chinese government has allowed the yuan to appreciate 30% against the dollar since 2005. This means that for some market sectors, it is almost the same price to produce in the U.S., and without having to deal with some of the quality control issues that have plagued Chinese factories. The continuation of this trend would bring huge amounts of manufacturing back to the U.S. However, the article reminds us that this is happening very slowly, so there is no way of really knowing exactly how this will turn out.
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Interestingly, I read an article the other day saying that companies in China are in big troubles. Some have stopped their production. Many are in serious financial problems due to the high inflation in China and the appreciation of Yuan. It seems they are having a hard time.
ReplyDeleteThis can help boost U.S economy and it makes sense since the costs are going to be the same so why not move back to the States. They don't have to deal with quality controls too. Im excited to see will happen even though it will take time.
ReplyDeleteIt's nice to know that there is blue collar jobs coming back into to United States. It shows that people and companies are willing to bring things back to the U.S. for our economic stability. I hope this helps becomes a trend with other companies.
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