Made in China to the United States and how much cost advantage Oxford Economic

 Made in China for United States manufacturing still have cost advantages? Global economic research and Government business consultancy Oxford Economics Institute (Oxford Economics) the assessments are given: 4%. Of course, this refers only to unit labor costs.

In recent days, according to Oxford economic research released a study, Chinese manufacturing unit labour costs (total labor compensation/total output, or average wage/productivity), the United States's advantage had shrunk to 4%. Meanwhile, compared to United States, and Japan and the United Kingdom, and Germany and other developed countries, China's unit labour productivity remains low. Total iron rail fare pricing power analysts say

The study spans between 2003 and 2016 report finds that if productivity into account, United States manufacturing sector consumes less labour costs per unit of output, only 4% higher than the Chinese, not only well below Australia, and Canada and Germany and other developed countries, Brazil and other developing countries were also lower.

Economies in unit labour costs in manufacturing

United States manufacturing productivity advantage

Geleigeli·Dake the report's authors (Gregory Daco) and jieleimi·lainade (Jeremy Leonard), "United States manufacturing industries now because the dollar and shale greatly reduced investment in the energy sector and encounter headwinds it is still the most competitive in the world. "

United States manufacturing industries include employees powerful productivity, flexible labour markets, cheap energy and a huge domestic market.

Said study data cited in the report showed that United States manufacturing output per employee from 2003 until 2016, approximately 40%, while Germany and the United Kingdom respectively 25% and 30%. Although India and China's productivity is doubled, United States the productivity advantages of 80% to 90%. It is this very high productivity, help the United States lowering unit labour costs.

The economies in manufacturing productivity

Meanwhile, China's wage has for many years maintained a higher gain. Institutions predict that real wages in China rose to 6.3% this year, than in 2015 and more than 7% growth will decline, but United States 2.7% this year's wage growth is still much faster.

That apparently has narrowed China's United States manufacturing cost advantages.

Integrated, United States value although it was overtaken by China, but is still ranked third in the world, Japan has a considerable lead. 2014 United States manufacturing output up to 2.1 trillion dollars, equivalent to the 9th largest economy in the world.

Does not form United States manufacturers returning tide

However, unit labour cost advantage alone, is not enough to support United States manufacturing Renaissance.

Reference has been made to a column by Bloomberg United States Bureau of labor statistics data, said United States has, since early in 2010, has increased by nearly 900,000 jobs in manufacturing, but had rebounded after the great earthquake at best.

United States trade deficit fell to 2015 from 2006 5.6%GDP 3%, but this figure is falling behind, there are two important factors need to be taken into account: first, the United States services trade surplus increased, the other is the United States domestic oil production surge and accompanying a setback in global oil prices. If excluding petroleum and petroleum products, United States commodity trade deficit only slightly lower than the highest point, and there is significant growth in the past two years.

Moreover, the Obama administration pushing the United States made plans to attract overseas distribution of United States businesses back, appeal seems limited.

Consultancy, A.T. Kearney said in a report released in December last year, some in China or any other country for productive activities of United States businesses consider move-back phenomenon, more will be a "one-off aberration" rather than "an unstoppable trend."

United States manufacturing import ratio and United States companies fetch index

From A.T. Kearney according to import and production data to measure the United States companies move, moved out of the data it can be seen that United States manufacturing activity did not form a back trend.