China Cost Advantages Erode as U.S., Mexico Gain, Report Says
(Journal of Commerce Online – Peter T. Leach)
China could lose advantage over U.S. in five years if freight rates rise 5%
The cost advantage of manufacturing products in low-cost manufacturing locations in Asia will erode in comparison to the U.S. and Mexico in 2012, according to a new report by global consultancy AlixPartners.
China, which is experiencing negative pressure as an exporter because of wage inflation, exchange-rate pressures and higher freight rates, could lose its cost advantage vis-à-vis U.S. production in four years if freight rates rise at 5 percent annually, according to the 2011 U.S. Manufacturing-Outsourcing Cost Index. Read more here.
Date: January 4, 2012