Seven groups of industries are nearing the point at which rising costs in China could prompt more companies to shift the manufacture of many goods consumed in the U.S. back to the U.S. Combined with an increase in U.S. exports, this shift could create 2 million to 3 million jobs and add around $100 billion in annual output to the U.S. economy.
Companies need to weigh not only their costs today but also the economic trends influencing total future costs. The labor content and logistics costs of a given product will have a determining influence on the optimal manufacturing location. Companies must also weigh projected productivity differences, the challenge of extended supply chains, and the high risk of cost volatility in China when considering their investments.
Source: BCG.com