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Home » Advances in Automation, Wage Hikes in China Compel Manufacturers to Consider Returning to U.S.

Advances in Automation, Wage Hikes in China Compel Manufacturers to Consider Returning to U.S.

June 9, 2015
Wall Street Journal

Low-cost manufacturing, for example, is moving westward from coastal cities as wages rise, leading to more goods produced in inland China, India and other Asian nations, the report said. Yet over time, inland wages are likely to increase as well, creating opportunities for other emerging economies.

Increased automation and 3D printing could reduce the advantages of producing goods in developing countries with low labor costs if technology displaces a portion of the workforce.

"World trade growth has been weak recently and the expansion of (global supply chains) has lost momentum," the report's authors wrote. "Some of this slowdown is likely cyclical, but rising wages in China and new automation technologies are challenging the low-wage model, prompting companies to consider re-shoring, or bringing production home."

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KEYWORDS Business Strategy Alignment Canada consumer packaged goods facility location FDI Global Logistics Global Supply Chain Management international trade North America Offshoring Supply Chain Analysis & Consulting Supply Chain Management: Business Strategy Alignment US. Manufacturing Wall Street Journal
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