Image: AP Images
According to a new report by The Boston Consulting Group, by 2015 wage inflation and a stronger yuan will force industries that have moved to China to come back to the U.S.
That could mean 2 to 3 million more jobs for the country, a lowered trade deficit (by 25-30%) and about $100 billion in output.
They’re calling it China’s “tipping point,” when the cost advantage of manufacturing some goods made for sale in North America is simply too high to be profitable. It will most effect sectors where goods are heavy, and logistics and shipping take up a higher portion of production costs than wages.