The Decline of China’s Manufacturing

Now that the advantages of cheap labor and shipping are slipping away from China, the country is in a desperate situation. Cash flow problems are holding the Chinese back from changing their entire business model that is based on cheap labor.

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Now that the advantages of cheap labor and shipping are slipping away from China, the country is in a desperate situation, according to a recent article in Forbes. Cash flow problems are holding the Chinese back from changing their entire business model that is based on cheap labor, and companies are finding it easier to shift blame rather than restructure and deal with the real issues.

But that won’t make the road back an easy one and should contribute to the continued re-shoring effort here in the U.S. Author Mark McKay draws a tight parallel between today’s Chinese manufacturers and many of those in the U.S. in the 1980s, and it’s not a positive outlook for the companies that fit the mold. Now seems to be a good time to reinforce the quality of American manufacturing.

Read “Six Reasons Why China is Losing its Edge in Manufacturing” for this interesting perspective on the future of China’s manufacturing industry.