I’ve just been sent an article about a report released late last year by the Boston Consulting Group which elaborates on why there is an American manufacturing renaissance occuring. It’s a pity I didn’t have it last year. However, it just reinforces what is becoming accepted by many New Zealanders (and Americans) that manufacturing in their own country makes good economic sense.
A return of manufacturing to the U.S. will accelerate as companies take into account the full costs of outsourcing to China and the strategic advantages of making products closer to consumers in North America, predicts a new report by The Boston Consulting Group (BCG).
It argues that the rising cost of wages in China means that the advantage of lowest cost will continue to diminish. And also there are strategic advantages in locating production closer to the consumer and the downside of global supply chains.
All these reasons make sense. Along with the economic flow on effect of tax paid on wages inside New Zealand. And keeping and building a manufacturing skill base here.
I wonder when the light will go on with this government? Buying rail wagons from China which are of dubious quality because of lowest cost is not economically sound. And certainly isn’t good for New Zealand in the short or long term.
This is worth a read.