Skip to main content

Report sees U.S. manufacturing gaining ground

Manufacturing is projected to be cheaper in the United States than in China by 2018. That news comes as manufacturing companies say they’re getting a boost as companies begin spending cash they’ve been sitting on.

Only seven of the 25 largest exporting countries had lower manufacturing costs than the United States, according to Associated Press coverage of a Boston Consulting Group report issued Friday.

Since 2004, U.S. manufacturers have improved their competitiveness, compared with every major exporter except India, Mexico and the Netherlands.

In 2004, for example, manufacturing in China cost 14 percent less than manufacturing in the United States. By this year, the China advantage had narrowed to 5 percent. If the trends continue, Boston Consulting found, U.S. manufacturing will be less expensive than China’s by 2018.

During the past decade labor costs, adjusted to reflect productivity gains, shot up 187 percent at factories in China, compared with 27 percent in the United States. The value of China’s currency has risen more than 30 percent against the U.S. dollar during the past decade.

A separate AP report detailed strong financial results from companies such as General Electric, Honeywell and Caterpillar.

Several companies have cited strong orders, which means that other large companies are investing in expensive equipment they need to grow their businesses, economists say.

"We're on the brink of that inflection point where the economy can really take off," says Diane Jaffee, a portfolio manager and managing director at the Trust Company of the West. "What's different now is that the industrial companies are saying there is real demand."

In the years since the Great Recession, big manufacturers were too worried about some part of the global economy to hire people or buy equipment that takes years to pay off.

Now, finally, the economies of the United States and Europe are showing steady progress, and although Chinese growth appears to be slowing, it remains strong.

"U.S. gets a little bit better every day. Europe is improving. The growth markets continue to expand and will provide growth during the year, even with volatility," General Electric CEO Jeff Immelt told investors last week.

Related

Norm

Ho, Ho, Ho, You Better Watch Out

It may be too early to decorate the showroom, but it’s not too early to hatch a marketing plan to profit from the holiday selling season.

IBEX

Industry reacts to IBEX cancelation

With Ian expected to hit Florida’s west coast as major hurricane, the consensus among those who spoke with Trade Only Today say it was the correct decision.

1_ABYCELECTRIFICATION

Ready for a Revolution

Electrification has been an increasingly common buzzword in the marine industry, especially in the past four to five years.

1_MARINEMAX.BOD

MarineMax Makes Appointment to its Board

Mercedes Romero has expertise in global procurement and strategic planning, working with such companies as Procter & Gamble and Starbucks.

1_ PULSE.PING.1

DEALERS: Are Interest Rates Impacting Demand?

This month’s Pulse Report survey asks dealers whether interest rate increases are causing a downturn in boat sales. Take the survey here.

1_SPOTZERO

Spot Zero Announces Expansion

The Fort Lauderdale-based reverse osmosis systems manufacturer is adding a 20,000-square-foot production facility.

1_Seakeeper Ride 450_2023 Sportsman Open 232 Center Console

Seakeeper’s New System Targets Pitch

Seakeepeer, whose gyroscopic stabilizers set the marine industry standard for eliminating as much as 95 percent of a boat’s roll, is now turning its attention to eliminating pitch with their Seakeeper Ride system.

7_IMG_0254

Propeller Precision

Yamaha’s new $20 million foundry produces about 100,000 propellers a year

1_.MARTIN_FLORY

PR Firm Celebrates 60th Anniversary

Martin Flory Group has served the RV and marine industry segments since 1962.