Innovation, rather than labor costs, may spur re-shoring

Posted by LDonia on 07/23/2012

Writing for Foreign Policy magazine last week, Vivek Wadhwa suggested that the real future of manufacturing is in the United States, rather than China.

While Wadhwa acknowledges that many CEOs have decided to re-shore their company’s jobs, he does not believe the increased cost of Chinese labor, nor the rising Yuan, are the factors accelerating this process.

The real threat to China comes from technology. Technical advances will soon lead to the same hollowing out of China's manufacturing industry that they have to U.S industry over the past two decades.

Wadhwa goes on to mention the technologies he believes to be leading the race: robotics, artificial intelligence, and 3-D printing, among others.

Says Wadhwa:

All of these advances play well into America's ability to innovate, demolish old industries, and continually reinvent itself. The Chinese are still busy copying technologies we built over the past few decades. They haven't cracked the nut on how to innovate yet.

Read more here.

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