China isnt as cheap as it used to be Wages in China have jumped so much that Chinese business owners are actually hiring undocumented workers from Myanmar and Vietnam to work in their factories. That, in turn, has made it only marginally cheaper for U.S. businesses to manufacture goods in China. When you factor in both labor and energy costs, it costs only 5 percent more to build something in the United States than to have something shipped from Chinese industrial centers like Chengdu or Shenzhen. That has led to companies like Apple, which experienced a PR nightmare following a string of suicides at the Foxconn facilities in China, to move some of its manufacturing back to the United States — in this case, its new line of Macs are made in factories in Texas. Keeping factories near distribution networks also gives companies the added advantage of being able to get products to customers more quickly, which is why Motorola is making its Moto X phones — which need to be built custom after being purchased — in Texas as well.
Posted on: Sun, 26 Jan 2014 07:44:04 +0000
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