The following excerpt is from an article written by TJ McCue about the possible addition of 2-3 million jobs by 2020…
“The Boston Consulting Group (BCG) predicts that improved U.S. competitiveness and rising costs in China will put the U.S. in a strong position to add 2 million to 3 million jobs in a range of industries and an estimated $100 billion in annual output by the end of the decade.
Moments after posting about The Economist‘s new special report on The Third Industrial Age, I discovered this survey from BCG. Decision makers at 106 companies across a broad range of industries responded to questions about rethinking where they manufacture goods: 37 percent said they plan to reshore manufacturing operations or are “actively considering” it and 48 percent said the same at companies with $10 billion or more in revenues.
Naturally, you can guess the top reason why: Labor costs. I would also guess that shipping/transportation costs are a huge factor. Other top factors or reasons they would bring work back to the USA include:
- 41 percent: Product quality
- 29 percent: Ease of doing business
- 28 percent: Proximity to customers
- 92 percent said they believe that labor costs in China “will continue to escalate”
- 70 percent agreed that “sourcing in China is more costly than it looks on paper”
Made in America is a patriotic phrase and one that sparks lots of conversation, but this survey finding doesn’t point to a mass exodus of US manufacturers from China. Certain products that can be made and sold more efficiently here should be made here. The report argues that the economics of making things here is shifting back to the US for goods we import and products we create and export. BCG sees this trend accelerating in just three short years, around 2015.” –TJ McCue
My question for everyone is… Do you think 2-3 million jobs that could be added by 2020 will be enough in an eight year span?
Just think that in one year that $9 billion in profit will be achieved if every American cared enough to purchase one USA Made garment in one year!
Open for thoughts…