Boston Consulting Group recently published a study titled “Made in America, Again: Why Manufacturing Will Return to the U.S.” In it, authors Harold L. Sirkin, Michael Zinser, and Douglas Hohner draw the conclusion that “rising Chinese wages, higher U.S. productivity, a weaker dollar, and other factors will virtually close the gap between the U.S. and China for many goods consumed in North America.” The implications? The U.S. is, once again, becoming an attractive option for manufacturing.
As a company that prides ourself on our Made in America story, frankly we’re glad to see such conclusions drawn. At the same time, we understand that many companies that put the bottom line above all else may instead just shift production from China to other low cost countries. However, as Sirkin et al point out, “these nations’ ability to absorb the higher-end manufacturing that would otherwise go to China will be limited by inadequate infrastructure, skilled workers, scale and domestic supply networks, as well as by political and intellectual property risks. Low worker productivity, corruption, and the risk to personal safety are added concerns in some countries.”
The point these authors are making is that not only has American manufacturing not met its demise, as predicted, but the U.S. is in fact becoming an “increasingly attractive option, especially for products consumed in North America.”
We at School House couldn’t agree more, and we are proud to say we are part of that trend bringing production back to America.