Fortune dug through the numbers to find that expenses to manufacture goods in the U.S. are now 10-20% higher than they are in China, and are between only around 5% lower than in many European markets. On top of that, Fortune also cites projections from The Boston Consulting Group, which estimate China"s cost advantage may shrink to as little as 2-3%. China is not longer as cheap as it once was, and the cost of setting up production facilities in China, longer shipping times, red tape and regulation may lead companies to decide its not worth the investment for a 5% discrepancy.
Fortune dug through the numbers to find that expenses to manufacture goods in the U.S. are now only around 5% higher than they are in China, and are between 10-20% lower than in many European markets. On top of that, Fortune also cites projections from The Boston Consulting Group, which estimate China"s cost advantage may shrink to as little as 2-3%. China is not longer as cheap as it once was, and the cost of setting up production facilities in China, longer shipping times, red tape and regulation may lead companies to decide its not worth the investment for a 5% discrepancy.