Great News: US Manufacturing Wages Will Be Lower Than China's in 5 yrs @collapse #peakoil @chrislhayes @maddow

Really? The BCG study suggests that US manufacturing workers are 3x more productive than China's, that their wages are growing rapidly, and that companies are opening plants in the US because labor is so cheap.

Chinese manufacturing cant grow 17% a year for 5 yrs without ENERGY and we understand that China is facing the worst energy crisis ever.
http://www.foxnews.com/world/2011/05/17/chinas-energy-crisis/?test=latestnews

So where will the US get all the natural resources and steel needed to manufacture goods? Especially with oil costing more than $120 a barrel?

Ok, here is the jobs plan from US politicians.

Oh, but wait it also says this: If the U.S. can not maintain or expand its wide productivity advantage vs. China the the projections quoted are likely to be modified to the detriment of U.S. manufacturing.

That means US Sweat Shops Likely - productivity means more hours, no unions, no healthcare, etc. USD drops and thats good for us! Yahoo.

Clipped from econintersect.com

U.S. Manufacturing is Coming Home

Econintersect (Updated May 5):  According to a report by the Boston Consulting Group (BCG), manufacturing is on the increase within the the U.S.  The study concludes that the U.S. will surpass China in manufacturing production of goods sold in North America over the next four years.  The U.S. lost the world lead in manufacturing that it had held for most of the twentieth century during the weak recovery from The Great Recession.  According to data from IHS Global Insight, quoted by the Financial Times, China had 19.8% of world manufacturing output with the U.S. second at 19.4% in 2010.

A key factor in the U.S. manufacturing resurgence comes from labor productivity, which is more than 3x that of China.  With the wages in China growing at a much higher rate than in the U.S. the productivity advantage is drawing domestic production back home, especially for the "more sophisticated" producrs mentioned in the FT article.

Among the U.S. corporations mentioned by the FT which have announced plans for major investments in new U.S. manufacturing are Caterpillar, General Electric and Ford.  In the first quarter of 2011 manufacturing production in the U.S. rose by 9.1% (annual rate), making it the fastest growing segment in the U.S. economy.

On May 5, as discussed at GEI Analysis by Steven Hansen, The BLS (Bureau of Labor Statistics) reported an unexpected drop in labor productivity growth.  Productivity is a key component of the projections for manufacturing reported in this news brief.  If the U.S. can not maintain or expand its wide productivity advantage vs. China the the projections quoted are likely to be modified to the detriment of U.S. manufacturing.

The BCG study says that Chinese manufacturing wage costs seem likely to rise 17 per cent a year in the next five years, compared with only 3 per cent a year in the US. Read more at econintersect.com