Boston Consulting Group raised quite a few eyebrows this week when they predicted that by 2015 the U.S. will be a more attractive place for companies to move their manufacturing bases to than China. Some of the notes from the BCG study include:
- Rising Wages in China plus the strengthening yuan are eroding China’s cost advantage vs. the U.S.
- America’s very productive, motivated, and flexible workforce is attractive to employers and Americans are focused on creating jobs
- Supply chain and communication issues are increasingly becoming more cumbersome in the Asian markets
Of course, you didn’t need a million dollar study from BCG to know this. If America were to make the tax structure more advantageous and eliminate healthcare and other costs, we would be far and away the first choice amongst executives. If you added a true valuation for the Yuan, versus the artificial valuation that their policy makers have been trying to maintain for years, the results would be even more dramatic.
