As factory jobs return to US, the need for technical training grows - Economy Watch
The Squawk on the Street team discusses comments made by Charles Bunch, PPG Industries chairman & CEO. He told Jim Cramer that rising costs in China could mean more jobs in the U.S.
By Martha C. White
Offshoring manufacturing jobs to China looked like the perfect way to cut costs a decade ago, but now companies that produce everything from computers to car parts are returning to the United States in growing numbers. Labor economists say the country needs to invest in more vocational and technical training programs so millions of jobless factory workers are equipped with the skills to benefit from this trend.
According to a survey by the Boston Consulting Group of executives at 106 manufacturing companies with $1 billion or more in sales, 37 percent said they are planning or "actively considering" onshoring. Among companies with more than $10 billion in revenue, that percentage shot up to nearly half. Leading the movement were companies that make rubber and plastic products, industrial machinery and electronics and computer equipment.
Advertise | AdChoices
Manufacturing executives cite several factors driving their decision, said BCG senior partner Harold Sirkin. The first is that the cheap Chinese labor that looked so appealing 10 years ago isn't so cheap anymore.