I am not enough of an expert to understand exactly what the cost differences are between the US and China. I know labor cost is a chunk of the cost, but what percentage of the production cost is labor and what other big differences are there? My interest is not that I am focused on producing in the US, rather it is on what are the competitive pressures to overcome whether in the US or anywhere.
The Seeking Alpha website, which is a stock analysis site, recently had an article about the recent ISM survey regarding the US manufacturing status. The author, Ronald Rutherford, walks through some analysis of the survey and other data. It is a good article, worth reading.
Some key points: China manufacturing growth is slowing, some consider that a bearish sign for the world economy. Ronald ponders whether that is true. US manufacturing is working hard, costs of overseas components are rising (partly due to weaker $).
The actual survey ressponses quoted are very interesting. I wish I was an ISM member:
Manufacturing: # "Our plants are working 24/7 to meet production demands." (Fabricated Metal Products) # "Capital projects moved from inactive to active" and "Award of long-awaited contracts."
ISM is the Institute for Supply Management:
No comments:
Post a Comment