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    “Made in America”: The Comeback

    U.S. exports hit a record $173 billion in March, up 15% from a year-ago and 37% from 2009. The good times for "Made in America" are just getting started, according to a new study from The Boston Consulting Group (BCG).

    In fact, BCG predicts 2015 will be a tipping point of sorts, when global manufacturers will view the U.S. as equal to if not better-than China, senior partner Harold Sirkin tells me in the accompanying video.

    "We're not saying the world's going to suddenly change and U.S. companies are going to manufacture here for shipment to China," Sirkin says. "But the U.S. will be a very important place if you're going to sell into the U.S."

    In making this seemingly outrageous forecast, Sirkin cites the following:

    • Rising wages in China plus the strengthening yuan are eroding China's cost advantage vs. the U.S.
    • America's "very productive, motivated and flexible workforce" is attractive to employers and all aspects of U.S. society — including unions and state governments -- are "focused on creating jobs."
    • Intangibles such as the length of the supply chain and the challenges of communicating over multiple time zones work to the advantage of the U.S. (The same is true of Mexico, which BCG says is "also poised to benefit as a low-cost alternative" to China.)

    For the record, BCG's forecast is based on the U.S. regulatory and tax environment remaining the same. This is about "pure economics," Sirkin says. "If you improve tax rates and regulation, it'll only make the trend happen faster."

    Clearly this forecast runs against conventional wisdom. But conventional wisdom also holds that America "doesn't make anything anymore," which isn't true either. Since 1972, U.S. manufacturing output has risen nearly 2.5 times, according to BCG.

    But U.S. manufacturing employment has fallen nearly 25% in the same time period and few consumer goods are made here anymore, which is why it "feels" worse than the reality; if BCG is even half right, that's going to change for the better soon.

    Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @atask or email him at altask@yahoo.com

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    2,422 comments

    • Best Jumpers  •  8 months ago
      Inflatable games for special events and parties are an iconic American tradition; which like many other industries has been impacted by overseas manufacturers. Yet a sliver of hope remains in the “Made in America” marker as manufacturers like Best Jumpers strive to keep the high quality product in the US. Inflatable Manufacturer Best Jumpers relies on the safety, quality and durability aspects to ensure this traditional American symbol of creativity remains Made in America.
    • NEW WORLD ORDER  •  10 months ago
      Here's the deal. You're going to start a business or expand the one you've got now. It doesn't really matter what you do or what you're going to do. I'll partner with you no matter what business you're in ��� as long as it's legal.

      But I can't give you any capital ��� you have to come up with that on your own. I won't give you any labor ��� that's definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you're allowed to operate your business. That's my role in the affair ��� to tell you what to do.

      Now in return for my rules, I'm going to take roughly half of whatever you make in the business each year. Half seems fair, doesn't it? I think so. Of course, that's half of your profits.

      You're also going to have to pay me about 12% of whatever you decide to pay your employees because you've got to cover my expenses for promulgating all the rules about who you can employ, when, where, and how. Come on, you're my partner. It's only "fair."

      Now��� after you've put your hard-earned savings at risk to start this business, and after you've worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you'd like to cash out ��� to finally live the good life.

      Whether or not this is "fair" ��� some people never can afford to retire ��� is a different argument. As your partner, I'm happy for you to sell whenever you'd like��� because our agreement says if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.

      I know��� I know��� you put up all the original capital. You took all the risks. You put in all the labor. That's all true. But I've done my part, too. I've collected 50% of the profits each year. And I've always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business.

      Oh��� and one more thing���

      Even after you've sold the business and paid all my fees��� I'd recommend buying lots of life insurance. You see, even after you've been retired for years, when you die, you'll have to pay me 50% of whatever your estate is worth.

      After all, I've got lots of partners and not all of them are as successful as you and your family. We don't think it's "fair" for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children.

      All in all, if you're a very successful entrepreneur��� if you're one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public��� you'll end up paying me more than 75% of your income over your life. Thanks so much.

      I'm sure you'll think my offer is reasonable and happily partner with me��� But it doesn't really matter how you feel about it because if you ever try to stiff me ��� or cheat me on any of my fees or rules ��� I'll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail.

      That's how civil society is supposed to work, right? This is Amerika, isn't it?

      That's the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs���
    • KRV  •  10 months ago
      In a free world you can not have prosperity in the midst of povert. America should work with Mexico to reduce crime in Mexico and promote it as a low cost manufacturing center. This will give stability to the continent and reduce the immigration and border crime. I am an Indian living in India
    • KRV  •  10 months ago
      I am an Indian living in India. I agree to what he says.
      • Terraformers 3 9 months ago
        Have you people discovered toilet tissue yet? Or do you still wipe with the left hand and eat with the right hand?
    • Lynn Ji  •  10 months ago
      Me chinese (born in china), me #$%$ on all of you white people and eat your dogs and cats too. We chinese already buying all your land, houses and businesses. You white american are lazy, fat only eat hmaburger and watch dumb shows on TV, so you will lose big time. China will be #1 economy by 2016 and we will OWN you. Nothing you can do, because you white people too lazy and fat and busy watching stupid TV shows, dont know nothing about the world or geography or history. You white people are going to be salves for China, we will buy your country. All you have is $16 trillion in debt and fat people eating hamburgers, you have nothing you are nothing and your country is going bankrupt. Me love you long time!
    • getaclue  •  10 months ago
      No Tickie No Wash! Americans without JOBS = no market for retailers or manufactured goods and/or products. How's that cheap foreign labor thing working out for you greedy S.O.B.s?
    • JRC  •  10 months ago
      It is about time and long due. after the failures of moving overseas (Mexico and China mainly) that brought bad quality items (How many of you have returned something "Made in China" before, or after the first use?--> Rest my case.

      The quality we put in our products due to th high skills of our workers is second to none (even the Japan)

      Toyota for instance has less quality defects here in the USA than in Japan (less ppm per car).

      BRING MANUFACTURE BACK but we need to start buying ONLY USA items and if they are not available we need to tell the manager of Lowes, Home depot and specially WALMART if you wan to sell here in our country better be made here.
    • Not made in china  •  10 months ago
      "ONLY" economics people if there is a customer service outlet in india, then it should be to help customers ONLY in india and nowhere else on the plannet. Same for every other country. Customer Rep in country A cannot help customer in country B and vice versa. Only customer Rep can talk to customer Rep from country to country.
    • Stvn C  •  1 year 0 months ago
      Most people don't even have a clue as to what is really happening, because they are blind and don't look around them. They are so cozy living in their own little world that they hardly venture out of until they are forced out into the real world when some tragedy strikes. Then they say OMG how did this happen?

      What I like to say is SHOW ME.

      I could be wrong but this is what I see happening.

      1. The unemployment rate is the highest I've ever seen and still rising..
      2. Gas and oil prices are too high.
      3. Prices are skyrocketing out of control.
      4. It takes two working people in one household to pay the bills.
      5. Most people earn less than their parents in comparison to the cost of living now as to the cost of living when their parents were working. Example: remember when gas only cost $0.50 a gallon or the rent was only $125 for a one bedroom apartment?
      6. More jobs are being sent overseas.
      7. Most countries that follow our role model are having the same financial difficulties that we have.
      8. The press is lying to us by telling us that things are getting better when they are actually getting worse.

      I can remember when there was no excuse for not working because there were jobs aplenty. Everyone was working and happy and were even able to save some of their paycheck.

      Then something happened people wanted more and GREED became the norm, big lies were told and most of the sheep believed the lies and this is where we are today.

      One of the biggest lies I've ever heard is that Americans are lazy and don't want to work. If that were the case then how did America become the largest and most productive industrial nation in the world? Not merely by size, because if that were the case then why are we now the least productive nation in the world? There is one thing that we produce more than any other nation and that is 'Hot Air' or B$.
    • Connie  •  1 year 0 months ago
      All of our Solgiers needs to come home this crap needs to stop and it will never will stop so why are our Solgiers still there?
      These People will not stop fighting it has been going on before 1979 To me it looks like they are are to take over the USA.
      • Michael 1 year 0 months ago
        Buy a dictionaey,(spelling incorrect intentionally), "solgiers? What the #@%$ is that?
    • Ỉ♥myḆẫbyầŊdmŸßiḰḕ  •  1 year 0 months ago
      But I like my ladies made in China =(...
      • Here's the truth 1 year 0 months ago
        If they only grew them with an a$$.
      • RedBaron 1 year 0 months ago
        You said it Jonny boy!!! Haha! That's all china is good for! Their women!!!
      • A Yahoo! User 1 year 0 months ago
        American girls aren't good enough for u...hmmm Jonny? :P
    • David  •  1 year 0 months ago
      I truly hope this comes to pass. If we were as patriotic as the Japanese, we wouldn't have had the recession. The trend of China becoming a superpower is a terrifiying thought for our world --- trustworthiness will be a meaningless word, fairness will be non-existent, money and profits will be the driving force for their every agenda. It's just how it is in China, it's their way of life. I should know I'm partly chinese. Look how they would sell melamine to babies for that little bit of extra profit. It's typical.
      • DIREINDEED 1 year 0 months ago
        If the general public only knew, they would have a completely different attitude and things may not have strayed as far as they did. As an "insider" and if you are American and in America, you should be more vocal and educate people in the realities of what is really the truth. Thanks for your comment.
      • Helmi Stream 1 year 0 months ago
        David, are you stupid or what? The Americans are figuratively kicking your head in and smashing your skull and breaking your ribs, and taking away your rice bowl by not hiring Asians, nor eating at Chinese restaurants, nor buying anything made in China. Are you going to turn the other cheek so they can slash your cheeks and gouge your eyes out? They're stabbing you in the back, in the the heart and gutting you and you still stick up for them? You're a glutton for punishment. Have some effing BACKBONE and stand up for yourself. I'm ashamed of you.
    • Silvio  •  1 year 0 months ago
      YEAH YEAH! YESSSS!! MADE IN USA ALL THE WAY, MADE IN USA ONLY!!
    • Terraformers 3  •  1 year 0 months ago
      Steve - I'm not even going to go there. You don't want to tick me off, really...you don't want to.
    • Jason H  •  1 year 0 months ago
      Dear readers,

      I am not creating a stir but merely presenting facts as the less educated and the naive simply have blown it out of proportions.

      First is responsibility. Americans have become irresponsible and always quick to point the finger and target a country or an ethnicity when something goes wrong. No one EVER goes back and questions the root of the case. You guys did it with Japan when their economy and trade suprlus were killing the the US, and you do it to minorities like the Mexicans on immigrations issues.

      Second, Americans are wasting billions elsewhere when it could have been spent in the US. The reason why my Chinese people are doing good is because they have a unified government which foucses on two things. Being strong militarily to prevent any future invasion (1850-1950 we lost 76+ million people and trillions by outside invasions and interventions) and being strong economically. Look at the $885B gap between the two countries (China + 256B yearly to -525B for the US) and you still wonder why other nations are cathing up.

      Third, like someone else said, China produces things based on specifications by other companies. We really do not care about stealing those technologies as it will impede the realtionship ofthe 30000+ companies and countries that deal with us. But petaining to military secrets and military advancements, sure, we will steal all we can. What, the US is that innocent? Where do you think your modern day missile, rocket propulsion, and nuclear technology came from? Yes to the wise, the freaking Germans. YOU GUYS STOLE IT TOO.

      The bottom line is, why hate on other countries when you have major problems you got to deal iwth domestically. Call the Chinese government crule or whatever, but we are cleaning us and letting the world know it. We execute CEOs for selling tainted milk to foreigners and we jail billionaires for 3 years for oil spills committed in other trade nations. And yes, we do not have a death row because we refuse to pay for the $25000 per inmate the US pay for on someone who clearly mudered. Once found guilty, we place bullet in a their heads the next week.

      If you do not believe me, kindly research national debts and balances and see that the US and all of their allies in Europe are going broke.

      Yals need to fix problems and in a hurry. We have always looked up to the US for everything, but you guys created the monster and let it out of Pnadora's box in the form of a 14 trillion dollar debt, the Chinese did not.
      • not you 1 year 0 months ago
        Too long. I didn't even bother reading it.
      • not you 1 year 0 months ago
        Too long. I didn't even bother reading it.
      • Loremipsum 1 year 0 months ago
        So... Why would your dumb a55 bother commenting?
    • Wisenheimer  •  1 year 0 months ago
      as long as our politicians, of both parties, let the Fed banks and Wall Street run amok, there will be NO improvement as financial fraud abounds. get rid of the well-dressed low-life criminals.
    • old far*  •  1 year 0 months ago
      Made in China = @#$%. I buy Made in the USA even though it costs more. This allows my neighbor to keep his or her job. Usually a better product anyway.
    • Anna  •  1 year 0 months ago
      From your keyboard to God's ears !
      I would love to buy nothing but American. Let's put America back to work.
    • Zippy1  •  1 year 0 months ago
      MADE IN USA, the only way to go!
    • t  •  1 year 0 months ago
      all the $h!TTy, poisonous, poorly-made products coming out of china should have dictated a switch to made in america a while ago. i guess people are tiring of buying crap. hopefully america won't cut corners like it did back in the industrial revolution producing rat/human/dirt canned food and will stick to making high quality products.

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