Study: U.S. closing costs gap with China
Dayton Daily News – A falling dollar, rising Chinese wages, freight costs and other factors are making U.S.-based manufacturing more competitive against China, says a study released last week by consultant Alix Partners.
The study also shows that the U.S. has gained ground against other “low-cost” nations such as Vietnam and Russia.
The gap between the U.S. and 12 other “low-cost” nations has narrowed for the first time since 2007, the study found. However, Mexico maintained its role as the world’s most “cost-competitive” nation, the study said.
“It is clear that the economic advantage of the so-called low-cost countries over U.S. manufacturers is shrinking,” said Stephen Maurer, managing director of Alix Partners, based in Southfield, Mich.
Rising worker wages may move from China’s coast to its interior — possibly raising transportation costs, said Miami University geography professor Stanley Toops.
But he cautioned that these changes may not add up to new business in Ohio. Southern states, with relatively lower wages and right-to-work laws, may benefit more from shifts from China to the United States.
