Can the U.S. Bring Jobs Back from China?
Posted by LeGianT on June 20, 2008
June 19, 2008, 5:00PM EST
Pricey oil is dulling the mainland’s edge in manufacturing. But American industry may not be ready to seize the opportunity
This would seem to be a good time for an American manufacturing renaissance. The economics of global trade are starting to tilt back in favor of the U.S. to a degree unseen in a generation. Since 2002 the dollar has plunged by 30% against major world currencies and is falling against the yuan. Wages in China are rising 10% to 15% a year. And spiking oil prices are driving up shipping rates. The cost of sending a 40-foot container from Shanghai to San Diego has soared by 150%, to $5,500, since 2000. If oil hits $200 a barrel, that could reach $10,000, projects Toronto financial-services firm CIBC World Markets.