Made in China has made tremendous contributions to the world. According to estimates by the United States, cheap Chinese manufacturing has reduced US$700 billion in spending for American consumers in recent years. However, with the development of technology, Chinese manufacturing technology has slowly been upgraded and it is no longer a cheap labor force! The report analyzes the top 25 economies in terms of global exports, using the United States as the benchmark (100). China's manufacturing cost index is 96. That is, if the same product is manufactured in the United States, the cost is 1 US dollar. China needs $0.96, which shows that the gap between the two sides has been greatly reduced. The report believes that China's manufacturing industry is under great pressure. Ten years ago, China's manufacturing costs were low, but now its cost has gone up. This is mainly due to three reasons: First, the wages of Chinese workers have been raised. Based on the productivity-adjusted wages, China’s hourly wage from US$4.35 in 2004 rose to US$12.47 in 2014, an increase of 187%. The second is the exchange rate. From 2004 to 2014, the exchange rate of the RMB against the US dollar rose by 35%. The third is energy costs. China's electricity consumption increased from US$7 per kilowatt-hour in 2004 to US$11 per kilowatt-hour, while natural gas cost rose from US$5.8 per million British thermal units to US$13.7, or 138%. Of course, not only has China's manufacturing costs soared, but economies such as Brazil, Russia, the Czech Republic, and Poland, which previously had relatively low manufacturing costs, have also encountered similar conditions. The traditional western European developed countries, the original high production costs are still rising, such as Switzerland, Belgium, Sweden, France and other countries. The exception is the United Kingdom and the Netherlands, where their manufacturing costs do not fluctuate much. It is noteworthy that China’s old rival India has not experienced a surge in manufacturing costs, and the country has been performing very steadily over the past decade. Among the 25 economies, the most prominent are the United States and Mexico. In 2014, their manufacturing cost index achieved the greatest improvement compared with 10 years ago. This is mainly due to low wage growth, continued productivity enhancements, stable exchange rates and huge energy advantages. It is precisely because of these advantages that the manufacturing cost gap between China and the United States has been narrowed to less than 5%, and the phenomenon that the “New York Times†reported the opening of a Chinese factory in the United States has appeared. Best Color coating Aluminum Coil manufacturer, Color can be silver, blue, golden etc, standard width 500-1750mm, can provide special size. Thickness from 0.2mm to 10mm or higher. Aluminum alloy code can be 1050, 1060, 1070, 1100, 1235, 3003,3105, 4343, 5052, 5059, 5182, 5454, 5083, 6082, 6182, 8006, 8011 etc. The aluminum strip coil roll which we produced for many application like construction, electronics, automotive, pharmaceutical, food packing, manufacturing, transportation, and so on. Aluminum Coil Roll,Coated Aluminium Coil,Color Coated Aluminium Coil,Color Coated Aluminum Roll Trumony Aluminum Limited , https://www.szaluminumcoil.com
On August 3, the “New York Times†Chinese website published an article “The Industrial Chain Reversal, Chinese Spinners Landed in the United Statesâ€, saying that the cost of China's spinning industry is 30% higher than that of the United States. China's spinning mills began to set up factories in the United States. In fact, the spinning industry is only a microcosm. With the increase in labor, energy and other costs, China's manufacturing industry is no longer as vertical and horizontal, and its international competitiveness has declined. According to the report of the Boston Consulting Group in the United States, “The Great Diversion of Global Manufacturing Industryâ€, China’s manufacturing costs are already almost the same as those of the United States.