New Report Shows Growth in US Manufacturing Competitiveness
A recently released study from the Boston Consulting Group (BCG) compared manufacturing costs and production across most of the world’s major economies and it found a compelling truth: the US has made siginificant gains in competitiveness over the past decade. According to an Associated Press article by Paul Wiseman about the study, BCG examined the 25 biggest exporting countries and concluded that only seven had lower manufacturing costs than the US did this year. Further, since 2004, American manufacturers have improved their competitiveness compared with nearly every major exporter – including China. Significant changes contributing to the the results include lowered American electricity costs brought about by the shale gas boom and increased labor costs in other countries around the world. Explanatory journalism start-up, Vox, helmed by former Washington Post ace Ezra Klein, also covered the report, republishing this instructive graphic which shows BCG’s “cost index,” which gives lower scores to countries where making stuff is cheaper (shaded yellow here), and a higher scores to countries where it’s more expensive (shaded blue).
It’s worth noting that this report examines only direct costs like electricity and labor and not other substantive costs like those incurred through taxes and regulations. But the report is still an interesting commentary on the shifting trends in manufacturing today.
Go here to check out more from the BCG report itself.
Competitiveness, of course, will be an issue explored in depth at the upcoming FABTECH 2014 show in Atlanta, GA on November 11-13, 2014. Registration for the show, which is expected to bring together 27,000 attendees and 1,400 exhibiting companies all under one roof, is open now.
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