Guess Which Country is Becoming a Lowest-Cost Manufacturer? (Spoiler Alert: It’s Not China)

The U.S. is on track to become one of the lowest-cost manufacturers in the developed world. We know that sounds like a typo, but when Boston Consulting Group says it in Business Week, it’s probably pretty reliable.

Here’s why BCG has the nerve to suggest this:

  1. The U.S. will have a labor cost advantage of 20%-45% over other developed countries by 2015—only three years from now.
  2. The U.S. has access to low-cost energy sources such as natural gas.
  3. Better competencies in logistics give the U.S. an edge as a global export base. Several big foreign manufacturers are planning to use the U.S. in this capacity.

As always, we welcome your ideas and comments.

This post is brought to you by PriSim Business War Games. Northwestern University professer Jeffrey R. Lefebvre is co-partner of PriSim which runs business simulation courses across the country.

PriSim Business War Games Inc. runs and designs customized business simulations that teach decision-makers about business, strategy, finance, and leadership


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