Beating China on price?
Will the Chinese equivalent of WalMart soon have to start importing cheaper U.S.-made consumer goods? I wouldn't bet on it quite yet, but a Boston Consulting Group study claims that we're closing the gap in manufacturing costs and might actually get cheaper than China within three years, mostly as a result of drastically reduced fuel costs, which is turn will be mostly because of drastically reduced fracking costs. As the article notes, all other things being equal, American companies would prefer to eliminate the risk and delay inherent in shipping "cheap" goods here from halfway around the world. We have to get pretty uncompetitive before that starts making sense, but maybe we can innovate our way out of the jam. Or maybe the EPA will find a way to outlaw fracking, to keep us from doing anything competitive or unfair or harmful to Gaia.
By Texan99 on Wednesday, July 08, 2015