The increase in the value of U.S. manufacturing output is inextricably linked with the retrenchment of U.S. large companies and the relocation of foreign factories to local production. Recently, there have been particularly noticeable signs of the return of traditional manufacturing companies such as equipment, furniture, textiles and apparel to the United States. Faced with rising expectations of Chinese workers’ salary levels, some US companies have expressed no intention of “fighting†in China. Whether it is due to a positive adjustment to the new environment or an inevitable result of an objective, the return of the US manufacturing industry deserves attention.
Rising labor costs in China It is expected that Just-style, a well-known textile and apparel site in the United States, recently published an article titled "China's Second Coming to Productivity". The article points out that it is no secret that China’s wages are rising. In fact, according to the Chinese government’s forecast, the average salary of Chinese workers will increase by at least 80% by 2015. At the same time, the productivity level will also increase, and the clothing output is expected to double in the next five years. Therefore, U.S. clothing companies need to reformulate their production layout in response to rising labor costs in China.
“Not only is Westerners expected that China’s wages will continue to rise, but the next five-year plan set by the Chinese government also revealed that 'the wages of Chinese workers will rise at least 80% by 2015'.†Early May, Boston The Advisory Group (BCG) released a forecast that labor costs in China's manufacturing industry will continue to climb and it is expected that the upward trend in labor costs will slow by 2015. The relevant spokesperson said: "The cost of production after China's wage adjustment will begin to be brought into line with the United States, and the level of productivity will be comparable to that of the United States. Thereafter, the United States will have to increase its investment in creating manufacturing to maintain its market competitiveness. The renaissance of the industry cannot be separated from government subsidies and support, especially in labor-intensive industries such as clothing and textiles."
In order to promote the reconstruction of the manufacturing industry in the Mississippi State of the southern United States, the local government has issued a series of multiple incentive programs, including gambling, subsidies, bonds, and tax relief, which can provide suitable preferential conditions according to the special needs of each company. Not only that, the U.S. government has also made efforts to attract foreign investment in the textile industry. Recently, the United States began to build some capital-intensive textile factories invested by taxpayers. Last year, Santana, a Brazilian company, allocated $100 million to build a denim factory in Texas. After a long period of negotiations, Santana finally obtained the official sponsorship from the United States. The U.S. government’s efforts to promote the development of the manufacturing industry have also achieved results. According to the latest data from the American Institute of Supply Management (ISM), in June of this year, the U.S. manufacturing sector achieved a continuous 23-month expansion and 25 consecutive months of economic growth. Compared to May's 53.5%, the June manufacturing index (PMI) rose to 55.3%, up 1.8 percentage points (an index above 50% indicates that manufacturing is expanding). The ISM index also shows that manufacturing is also continuing to expand the scale of recruitment. The employment index reached 59.9% in June, an increase of 1.7 percentage points.
Local expansion or relocation to other countries In addition to returning to local production, U.S. manufacturers have their own second package. The Boston Consulting Group emphasized that if wages in China are to rise faster than in other parts of Asia, U.S. producers will shift production to poorer countries, and the labor costs in these countries may be 80% or more lower than those in China. At present, U.S. companies are already making final adjustments and trade-offs. In the future, no matter whether they choose to "transfer" or "return to the nest," US manufacturing has moved away from China.
In fiscal year 2007, the foundry in China produced 35% of Nike branded footwear products for Nike, and the foundries in Vietnam, Indonesia, and Thailand produced Nike shoes 31%, 21%, and 12% respectively. Products. In fiscal year 2010, the proportion of Vietnamese foundries increased by 37%, China was ranked second with 34%, and Indonesia and Thailand accounted for 23% and 2% respectively. "Made in Vietnam" replaced "Made in China" with its cost advantage and became the world's largest sports shoe production base for the Nike brand.
The migration of Nike's production base is a typical example of the strategic restructuring of U.S. manufacturers. With the increase in wages and employment opportunities brought about by the labor market, the Chinese economy has developed from exports in favor of consumption. The appreciation of *** has also led to lower profit margins for already-compact manufacturers' low-priced products, such as footwear and ready-to-wear products. Under such circumstances, U.S. manufacturers have to consider long-term plans to ensure their own profits. As the American economist Mario Moreno said, the rising labor costs in China have prompted the United States to begin to 'escape'.
According to statistics from the US Department of Commerce, from the point of view of investment sources, Asian investment in China has increased, and US investment in China has seen a large drop. From January to June this year, 10 countries and regions in Asia invested 10,850 newly established enterprises in China, an increase of 9.83% year-on-year; actual investment in foreign capital reached US$52.53 billion, a year-on-year increase of 23.88%. The United States has invested 727 new enterprises in China, a decrease of 5.09% year-on-year; actual investment in foreign funds was US$1.679 billion, a year-on-year decrease of 22.32%.
The signs of a pick-up in manufacturing and tightening investment in China show that the real economy in the United States is revitalizing, and the US “re-industrialization†strategy is in effect. With the rebound of the comparative advantage of the United States, the country’s return to manufacturing will continue to strengthen.
China's manufacturing status is difficult to shake Although it seems that the trend of the return of the US manufacturing industry is conclusive, some economists point out that its return strength has not yet reached a level worthy of attention. According to the US Container Import Data released recently, in the first quarter of 2011, China’s manufacturing accounted for 45% of the US’s total imports, a decrease of one percentage point from the first quarter of 2010. China is still by far the largest supplier of container goods in the United States, and this status has not yet been significantly shaken.
Industry analysts believe that there are two reasons why the return of U.S. manufacturing has not yet reached its scale. One is that the labor cost gap between China and the United States is still very large. According to the exchange rate conversion, the labor cost in the United States is about six times that of China. This is a huge “gapâ€. It is not easy for manufacturing to return to the United States to cross this gap. Another point is that China's huge market capacity, rapid growth in consumer spending, so that the production base as close to the consumer market as many manufacturers agree.
On the other hand, in the U.S. market, the share of the Chinese textile market is about 20% to 30%, while the market share of other Southeast Asian countries is less than 10%. At present, only some orders have shifted, compared with China. Although Southeast Asian textile exports have grown rapidly, the base number and scale have remained limited. From the textile and garment export data of this year, although the growth rate of Chinese textile enterprises has slowed down, but the export volume has risen, which indicates that the overall manufacturing capacity and product level of China's textile industry are improving. In the process, the United States will choose to transfer some low-end products from China to Southeast Asian countries, and mid-range products will remain in China.
Rising labor costs in China It is expected that Just-style, a well-known textile and apparel site in the United States, recently published an article titled "China's Second Coming to Productivity". The article points out that it is no secret that China’s wages are rising. In fact, according to the Chinese government’s forecast, the average salary of Chinese workers will increase by at least 80% by 2015. At the same time, the productivity level will also increase, and the clothing output is expected to double in the next five years. Therefore, U.S. clothing companies need to reformulate their production layout in response to rising labor costs in China.
“Not only is Westerners expected that China’s wages will continue to rise, but the next five-year plan set by the Chinese government also revealed that 'the wages of Chinese workers will rise at least 80% by 2015'.†Early May, Boston The Advisory Group (BCG) released a forecast that labor costs in China's manufacturing industry will continue to climb and it is expected that the upward trend in labor costs will slow by 2015. The relevant spokesperson said: "The cost of production after China's wage adjustment will begin to be brought into line with the United States, and the level of productivity will be comparable to that of the United States. Thereafter, the United States will have to increase its investment in creating manufacturing to maintain its market competitiveness. The renaissance of the industry cannot be separated from government subsidies and support, especially in labor-intensive industries such as clothing and textiles."
In order to promote the reconstruction of the manufacturing industry in the Mississippi State of the southern United States, the local government has issued a series of multiple incentive programs, including gambling, subsidies, bonds, and tax relief, which can provide suitable preferential conditions according to the special needs of each company. Not only that, the U.S. government has also made efforts to attract foreign investment in the textile industry. Recently, the United States began to build some capital-intensive textile factories invested by taxpayers. Last year, Santana, a Brazilian company, allocated $100 million to build a denim factory in Texas. After a long period of negotiations, Santana finally obtained the official sponsorship from the United States. The U.S. government’s efforts to promote the development of the manufacturing industry have also achieved results. According to the latest data from the American Institute of Supply Management (ISM), in June of this year, the U.S. manufacturing sector achieved a continuous 23-month expansion and 25 consecutive months of economic growth. Compared to May's 53.5%, the June manufacturing index (PMI) rose to 55.3%, up 1.8 percentage points (an index above 50% indicates that manufacturing is expanding). The ISM index also shows that manufacturing is also continuing to expand the scale of recruitment. The employment index reached 59.9% in June, an increase of 1.7 percentage points.
Local expansion or relocation to other countries In addition to returning to local production, U.S. manufacturers have their own second package. The Boston Consulting Group emphasized that if wages in China are to rise faster than in other parts of Asia, U.S. producers will shift production to poorer countries, and the labor costs in these countries may be 80% or more lower than those in China. At present, U.S. companies are already making final adjustments and trade-offs. In the future, no matter whether they choose to "transfer" or "return to the nest," US manufacturing has moved away from China.
In fiscal year 2007, the foundry in China produced 35% of Nike branded footwear products for Nike, and the foundries in Vietnam, Indonesia, and Thailand produced Nike shoes 31%, 21%, and 12% respectively. Products. In fiscal year 2010, the proportion of Vietnamese foundries increased by 37%, China was ranked second with 34%, and Indonesia and Thailand accounted for 23% and 2% respectively. "Made in Vietnam" replaced "Made in China" with its cost advantage and became the world's largest sports shoe production base for the Nike brand.
The migration of Nike's production base is a typical example of the strategic restructuring of U.S. manufacturers. With the increase in wages and employment opportunities brought about by the labor market, the Chinese economy has developed from exports in favor of consumption. The appreciation of *** has also led to lower profit margins for already-compact manufacturers' low-priced products, such as footwear and ready-to-wear products. Under such circumstances, U.S. manufacturers have to consider long-term plans to ensure their own profits. As the American economist Mario Moreno said, the rising labor costs in China have prompted the United States to begin to 'escape'.
According to statistics from the US Department of Commerce, from the point of view of investment sources, Asian investment in China has increased, and US investment in China has seen a large drop. From January to June this year, 10 countries and regions in Asia invested 10,850 newly established enterprises in China, an increase of 9.83% year-on-year; actual investment in foreign capital reached US$52.53 billion, a year-on-year increase of 23.88%. The United States has invested 727 new enterprises in China, a decrease of 5.09% year-on-year; actual investment in foreign funds was US$1.679 billion, a year-on-year decrease of 22.32%.
The signs of a pick-up in manufacturing and tightening investment in China show that the real economy in the United States is revitalizing, and the US “re-industrialization†strategy is in effect. With the rebound of the comparative advantage of the United States, the country’s return to manufacturing will continue to strengthen.
China's manufacturing status is difficult to shake Although it seems that the trend of the return of the US manufacturing industry is conclusive, some economists point out that its return strength has not yet reached a level worthy of attention. According to the US Container Import Data released recently, in the first quarter of 2011, China’s manufacturing accounted for 45% of the US’s total imports, a decrease of one percentage point from the first quarter of 2010. China is still by far the largest supplier of container goods in the United States, and this status has not yet been significantly shaken.
Industry analysts believe that there are two reasons why the return of U.S. manufacturing has not yet reached its scale. One is that the labor cost gap between China and the United States is still very large. According to the exchange rate conversion, the labor cost in the United States is about six times that of China. This is a huge “gapâ€. It is not easy for manufacturing to return to the United States to cross this gap. Another point is that China's huge market capacity, rapid growth in consumer spending, so that the production base as close to the consumer market as many manufacturers agree.
On the other hand, in the U.S. market, the share of the Chinese textile market is about 20% to 30%, while the market share of other Southeast Asian countries is less than 10%. At present, only some orders have shifted, compared with China. Although Southeast Asian textile exports have grown rapidly, the base number and scale have remained limited. From the textile and garment export data of this year, although the growth rate of Chinese textile enterprises has slowed down, but the export volume has risen, which indicates that the overall manufacturing capacity and product level of China's textile industry are improving. In the process, the United States will choose to transfer some low-end products from China to Southeast Asian countries, and mid-range products will remain in China.
Plug-In Copper Terminal,Copper Stud,Plug In Type Terminal
Precision Drawing Parts ,Electronic Contact Co., Ltd. , http://www.chstampingpart.com