For years companies have been eagerly outsourcing production & jobs to lower-cost magnets like China, India and Mexico. BUT WAIT! Might this trend be about to change?
The Wall Street Journal recently reported some interesting facts… like annual wage rates soaring 15% in China to the point that some sectors have employees earning as much as their counterparts in the US. Then there are higher material & shipping costs – and – states offering companies deeply-discounted tax incentives.
The president of the Beijing-based American Chamber of Commerce in China recently warned a meeting of corporate & trade officials in Washington D.C. that “China’s low-wage advantage will disappear over the next 5 years.” Should that happen, shifting production to Vietnam or India isn’t so easy because they don’t have the supply base, shipping infrastructure and skilled labor that China does.
WILL COSTS DRIVE COMPANIES HOME? What do you think – yes or no – and why? And if you like this post please LIKE us below! But most importantly, thanks for reading EVERYTHING’S CONNECTED.
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