Categorized | China, Trade

M&T News: Why Production in China is not Cheap. Hidden Costs and Risks

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Richard McCormack’s recent issue of Manufacturing and Technology News has this lead article.

The Case Against Shifting Production To China; Hidden Costs And Growing Risks Make U.S. Attractive For Manufacturing

By Richard McCormack

Rising costs in China along with dozens of hidden costs are making it more economical to either keep manufacturing in the United States or bring it back from China, according to research into the true costs of outsourcing.

Companies are not adequately accounting for dozens of hidden costs and growing risks associated with outsourcing production to China, according to David Meeker of Neoteric Product Development based in Acton, Mass., and a lecturer at the Massachusetts Institute of Technology. When companies tally all of the costs of offshore outsourcing and adopt new design techniques for streamlining manufacturing, the cost advantage of moving production to China disappears.

The full article is here.

2 Responses to “M&T News: Why Production in China is not Cheap. Hidden Costs and Risks”

  1. Bob Hall says:

    Great article. Great newsletter. Thank you.

  2. Frank says:

    I am blown away that our sophisticated, large, ex-American corporations didn’t identify all of the costs and anticipate this.

    Oh well, it only cost us millions of jobs, tens of thousands of businesses, a decade of economic malaise, our kids future and possibly our whole economy. No big deal. Maybe these brainiacs and their chronies in government will admit their folly and apologize to the nation for almost destroying it.

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