Manufacturing 2.0
Rock River Valley manufacturing experts discuss the many facets of manufacturing: technology, education, training, events, people and any other aspects of this important segment of our economy. They’ll use this blog to get the word out and solicit feedback on local and global manufacturing. They hope to better engage our employers, employees and our future work force and increase their understanding of manufacturing.

China’s Outsourcing Appeal Dimming

September 11th, 2008 at 04:21pm Bob Trojan

Soaring energy costs, the falling dollar and inflation are cutting into what U.S. manufacturers call the “China price”– the 40 to 50 percent cost advantage once offered by Chinese producers.

The export model that has powered China and other Asian countries for three decades will be compromised if fuel prices continue to rise, said Stephen Jen, a managing director for Morgan Stanley.

“Globalization has gone a little bit too far. It has overshot,” Jen said. “We’re not saying Asia is going to crumble, but we are saying Asia enjoyed extraordinary conditions in the past. Now the conditions are changing very quickly because of the energy shock, and Asia is coming under pressure.”

The ripple effects have been far-reaching. The trade imbalance between the United States and China — a source of political tension for years — is beginning to right itself as Chinese exports fall and U.S. exports rise. Global trade routes are being transformed, suggesting a possible return to a less integrated world economy.

Read the rest of the story in the Washington Post….

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/07/AR2008090702262.html?sub=new

Entry Filed under: Export, Productivity, Technology

1 Comment Add your own

  • 1. Paul  |  September 12th, 2008 at 11:32 am

    the cost we have paid for outsourcing manufacturing to china has been the loss of high-tech jobs in this country, resulting in an economic slowdown..While we are preparing to make a digital TV transition in this country, why aren’t we making converter boxes and Televisions in this country?…we are not only outsourcing our jobs away , but we are sharing our technology and weakening our economy …It’s ass backwards economics…the money we spend needs to stay in this country, to pay wages for people in THIS COUNTRY …… if it doesn’t we will eventually outsource ourselves into oblivian, where we will be a third world country, poor, starving and dependant on foreign resources… I am scared to death that americans are buying nothing but foreign cars, foreign electronics, foreign foodstuffs, foreign clothing, foreign shoes, foreign cosmetics, and foreign services such as web hosting, and call center services…

    BE AMERICAN…SUPPORT YOUR COUNTRYMAN……BUY AMERICAN……….

Leave a Comment

Required

Required, hidden

Security Code:

Some HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>

Trackback this post  |  Subscribe to the comments via RSS Feed