Chinese Offshoring Costs Likely To Eclipse U.S. Manufacturing's By 2015

Over the past few decades, China has evolved into the assembly line to the world. That may not be the case in the coming years, with rising labor and transporation costs making it as costly or more as manufacturing in the good ole USA, according to a recent study.

Offshoring to the communist nation is expected to start losing the upperhand as early as 2015, according to the consulting firm AlixPartners.

"The Chinese manufacturing cost advantage has eroded dramatically in the last few years," saidSteve Maurer, AlixPartners managing director. "If you go back to 2005, it was pretty common for landed cost from China to be 25 to 30 percent less than the cost of manufacturing in the United States. Based on our analysis, two-thirds of that gap has closed," Steve Maurer, the firm's managing director, told CNBC recently.

That revelation isn't sitting well with Mark Miller, CEO of Prince Industries, who has got a few plants in China, spewing forth components for Caterpillar, Siemens and Honeywell, among others.

He's been caught by surprise -- not by the cost of manufacturing eventually rising in China but how quickly it has.

"It's something that we anticipated when we went to China, we just didn't know how quick it would happen," he told CNBC.

A good thing indeed for U.S. manufacturing and American jobs. Happy Saturday!

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