Boston Bulls

To the list of those bullish on the prospects for US manufacturing, add the Boston Consulting Group.

The consultancy group has issued a report that, in essence, gives China about five years before the gap between the two nations is closed.

The report contains few surprises. BCG points to steady increases in China’s wage rates and logistical costs, coupled with higher productivity in the US, as reasons for its optimism. Automation in China will have a deleterious affect on manufacturing there, as it will further reduce any labor rate advantage.

Moreover, any shift to other lower-cost nations such as Vietnam or Brmitl will be mitigated in part by those nations’ weaker infrastructures.

Pointing to past successes in fending off Taiwan and Japan, BCG says that US manufacturing sector in well into a period of adjustment and retrenchment, and “conditions are coalescing” for another American factory resurgence.

Worth a read.

About Mike

Mike Buetow is editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He is also vice president and editorial director of UP Media Group, for which he oversees all editorial and production aspects. He has more than 20 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow
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2 Responses to Boston Bulls

  1. David Brostoff says:

    Mike,

    I enjoyed reading your post, “The Boston Bulls,” but was puzzled by the acronym “Brmitl.” I think I got Brazil, Russia, Mexico, Indonesia and Turkey, as here , but what does the “l” stand for? Latvia or Lithuania?

    Thank you,

    David

  2. David Brostoff says:

    When I said “as here,” I meant “http://www.ft.com/intl/cms/s/0/f717c8e8-21be-11e0-9e3b-00144feab49a.html#axzz1c5vEluEL”. (It didn’t display when I posted it within angle brackets.)

    David