Can the US Become a Magnet for Manufacturing?

It’s been a long time since the US has been widely appreciated as a good place for multinational companies to locate new manufacturing plants. Chinese labor is cheap, and emerging markets are increasingly efficient, so why should a global automaker or technology giant choose to manufacture in the US?

The answer is because the US has dramatically improved its cost advantage versus industrialized countries, and has narrowed the gap with emerging markets as well. (more…)