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China To Overtake US In Manufacturing

From the UK’s Financial Times:

US manufacturing crown slips

By Peter Marsh

June 20 2010

The US remained the world’s biggest manufacturing nation by output last year, but is poised to relinquish this slot in 2011 to China – thus ending a 110-year run as the number one country in factory production.

Isn’t this great news?

We can do China’s laundry.

The figures are revealed in a league table being published on Monday by IHS Global Insight, a US-based economics consultancy.

Last year, the US created 19.9 per cent of world manufacturing output, compared with 18.6 per cent for China, with the US staying ahead despite a steep fall in factory production due to the global recession…

The US became the world’s biggest manufacturer in the late 1890s, edging the then-incumbent – Britain – into the number two position.

Hal Sirkin, head of the global operations practice at Chicago-based Boston Consulting Group, said the US should not despair too much at the likelihood that it would lose the global crown in manufacturing to China.

“If you have a country with four times the population of the US and a tenth of the wages, it is fairly obvious they will pull ahead at some time in productive capabilities,“ he said.

Why is this inevitable?

Last year, according to IHS, goods output by the US totalled [sic] $1,717bn, ahead of China at $1,608bn.

However in 2011, on the basis of IHS’s estimates, China’s factory output will come to $1,870bn, a fraction ahead of the projected US figure for the year

We can’t wait.

This article was posted by Steve on Monday, June 21st, 2010. Comments are currently closed.

5 Responses to “China To Overtake US In Manufacturing”

  1. proreason says:

    Why hasn’t this been celebrated by our patriotic jouranlists yet? could there be any better news?

  2. heykev says:

    The News Media all be pleased with this good news. Soon along with the Chinese government owning us we be at their mercy for parts for every imaginable item in our homes and used by our Military.

    On a personal note. I have said for at least 10 years that if/when I have kids they will learn Chinese. My soon-to-be 4 year old daughter will be learning Chinese instead of Spanish as I believe it will help her navigate once she becomes an working adult.

  3. Rick Caird says:

    I am not convinced about this projection. For example, if Europe retrenches, as Merkel expects, in an attempt to get to budgets in order, then we can expect Europe to have reduced economic activity. If that happens, then unless China builds to inventory rather than building to order, their manufacturing output will go down.

    As of today, China claims to be letting the Yuan float. While they probably will not let it float very much, but as it increases in value, the cost of Chinese goods will go up and that will probably reduce the amount China sells.

  4. Nimblicity says:

    If the Americans who claim to want all these manufacturing jobs really did, their majority would vote for lower taxes, less regulation, and a principled foreign policy. I suppose they’ll have another chance to make good in four months. We’ll see…

    Not good news, but hardly a surprise. In the medium-term, I look for more mfg to move to India & Vietnam. China may still then claim number one but it will be with a smaller slice of the pie. Remember when everything seemed to be made in Japan? Sometimes by the time ya really know what’s happening, it’s about to change.

  5. AcornsRNutz says:

    But isn’t it at least a little vindication to all these whiners who claimed that evil corporations were shipping their stuff over seas and killing all our manufacturing jobs. MAybe, but it still took 110 years for the government to push the issue so hard it knocked us down to a lousy 2nd place in global manufacturing statistics.

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