Manufacturing Jobs Returning to U.S.

As offshoring becomes more expensive due to the higher costs of shipping an international infrastructure, more companies are making plans to expand their manufacturing operations at home.
January 25, 2010, 8am PST | Tim Halbur
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New tariffs, taxes, and employee salary and benefits laws are greatly diminishing the advantage of manufacturing in China, according to a new report by AlixPartners.

Clare Goldsberry reports, "Gone are the days when OEMs could realize 30 to 50 percent cost savings in manufacturing their products, which today gives companies pause when they consider whether it makes more sense to manufacture in the United States. To develop its index, AlixPartners looked at the relative costs for a market basket of parts over the past three years, and the results showed that China, once the lowest-cost supplier for this market basket, dropped to third in LCC rankings, behind second-ranked India and the new number one, Mexico."

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Published on Sunday, January 24, 2010 in AreaDevelopment Online
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