companies moving jobs to u.s. from china to avoid inflation
On the most recent morning, 90-at Master Lock-year-
Old factory in Milwaukee, a group of machines spinning, spit out a combo lock used by American high school students every 2 secondsto-school rush. The seven-day-a-week, three-shift-per-
The whirlwind of the event marked the change two years ago, when the machine usually runs only a few hours a day, because the units of the Fortune brand company ordered more padlocks from suppliers in China, instead of making padlocks.
Why keep production low from the world?
Cost Workshop back to a Union founded in the United StatesS.
A factory with six times higher wages than China?
Efficiency: The machine speed in Milwaukee is about 30 times that the company bought from a Chinese factory, exceeding the compensation for the wage difference.
\"I can make combo locks in Milwaukee at a lower cost than in China,\" said Bob Rice, senior vice president of America\'s largest car company. S.
Manufacturer of padlock.
In the past two years, the factory has increased its workforce by about 78 workers to 440.
This is a little good news for the long termsuffering U. S.
In the manufacturing sector, about 2 million people were laid off and about 14 were laid off.
6% of employees in the last recession.
It has not recovered since then and now employs 11 employees.
7 million people, down 34,000 from the official end of the recession in June 2009.
The main lock is not alone.
GE and Boeing are also part of small American groups. S.
Companies that increase production in the United StatesS. factories.
There are many factors driving this shift, including rising wages in parts of Asia, soaring fuel prices and the complexity of Trans-Pacific shipments. (
Reuters Insider: Made in America is back as an American film companyS.
Vendor expansion: link. reuters. com/nuf42s )
Economic irony \"what you\'re starting to see is that the economy is increasingly leaning towards us sourcing from the US, not from low-income countries
Cost country, \"said Daniel mesxrose, chief economist at the Washington trade group Manufacturers Alliance/MAPI.
Here is an element of irony.
The sluggish US economic recovery comes as emerging economies, including China and India, are enjoying strong growth, helping their manufacturers narrow the cost gap with foreign competitors.
China\'s inflation rate reached 5.
5% years, far ahead of the United States 3.
Title rate of 6%.
A study by the Boston Consulting Group predicts that as Chinese wages grow at a rate of 15-20% per year, labor costs in manufacturing in both countries may even decline by 2015.
Rising oil prices have pushed up the cost of shipping goods by boat or plane and eroded China\'s advantage.
Automation also helps tilt the balance to the US.
Bruce Kelas, general manager of the main lock factory, estimates that his factory--
Where ordinary workers supervise the operation of six high-riseSpeed machine-
24,000 locks are produced every day, about one lock
Sixth, the number of workers needed by the company\'s Chinese suppliers and competitors.
Today, Master Lock makes about 55% padlocks in North America. -
A satellite location in Milwaukee and Norfolk, Mexico. -
The rest are made in China.
This is from 50-
50 points two years ago.
To be sure, these companies are exceptions to the United States. S.
Businesses from Apple to Nike focus on design and marketing, leaving production to independent contractors.
Thomson Reuters Copyright 2011