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Supply Chain Graphic of the Week: No Wonder US has been Losing Manufacturing Plants

US Producer Prices Up Big in Last 15 Years, while China Prices are Flat


Oct. 11, 2018

There is some debate for sure on how much if at all US manufacturing has recovered of late, but there is no question that over the past 20 years, the number of factories, jobs, and global marketshare has decreased.


That fact is easily explained if you look at the chart below, from Dr. Michael Mandel in an interesting new report on the web site of MAPI, the Manufacturing Alliance. The chart shows the change in the US producer price index since 2004 compared to the change in the price of Chinese imports.



Source: MAPI, The Manufacturing Alliance


As can be seen, US manufacturing prices have risen substantially, some 30%, while the price of Chinese imports have essentially remained flat for now almost 15 years despite rapidly rising wages in the country.




The good news? Mandel believes digitization in terms of 3D printing and robotics is going to transform US manufacturing, bringing much production back to the US and even the Rust Belt.


We'll see.


Any Feedback on our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback section below.


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