This article appeared online at TheNewAmerican.com on Thursday, July 9, 2015:
In its latest report on American competitiveness, the Boston Consulting Group (BCG) estimates that the average cost to make goods in the United States is now only five-percent higher than in China, and between 10 and 20 percent lower when compared to the major European economies such as Germany and France. In less than three years, BCG projects China’s advantage to disappear altogether.
While part of the reason is rising wages in China and in the Eurozone and American companies improving their productivity faster than their competitors abroad, the primary reason, says BCG, is fracking — the technology that has driven energy costs to a fraction of what they were just a few years ago.
Back in August 2013, Harold Sirkin, a senior partner at BCG, predicted the U-turn that would result in “reshoring” of millions of jobs, starting in 2015: