In 2013, the "reshoring" of American manufacturing increasingly showed cost advantages

After decades of outsourcing, the United States is quietly experiencing a manufacturing renaissance. Apple, Caterpillar, Ford Motor, General Electric, Whirlpool and other companies are producing more and more goods in the United States. It's not just U.S. companies that are attracted by cheap energy, a weak dollar and stagnant wages. Samsung Electronics plans to invest $4 billion in a semiconductor factory in Texas, Airbus is building a plant in Alabama and Toyota wants to build in Indiana. vans and then exported to 

Asia. Although industrial production in developing and emerging economies declined in 2012 due to lower export demand, overall growth in manufacturing value added remained strong. Currently, the added value of manufacturing in developing countries and emerging economies accounts for 35% of the world's total. The rise in labor costs in 

China and the rise in industrial land prices are the main reasons for the revitalization of old industrial areas in the United States. The global economic and financial crisis in 2009 not only forced the manufacturing industries in industrialized countries to carry out large-scale layoffs, but also caused a decline in labor productivity in these countries. In addition, the decline in net production output in the world's eight major industrialized countries was much greater than the number of employees, indicating that many companies still retain a remaining force when there are only few or no orders.

 The cost advantage of American manufacturing

Since joining the World Trade Organization in 2001, China has become the world's low-cost factory. However, Chinese workers' wages and benefits are growing at an annual rate of 15% to 20%, while American wages have stagnated. Although the Chinese government strives to keep the currency stable, the yuan has appreciated 33% against the U.S. dollar since 2005. The average cost of industrial land in China overall is US$10.22 per square foot (1 square foot = 0.09290304 square meters), but in the coastal city of Ningbo it has risen to US$11.15, in Shenzhen it is US$21, and in the US states of Tennessee and North Carolina it is only US$1.30 USD to $4.65.

Silkin, senior partner at Boston Consulting Group: "In the next five years, if factories are built in some places in the United States, the overall production cost of many of its products will only be about 10% to 15% higher than in coastal cities in China. If tariffs and shipping costs are also considered, The manufacturing cost gap between the United States and China will further narrow.