Business and Manufacturing in the US are Improving; Suggests Surveys
The mentality of many companies is changing from outdated beliefs for making manufacturing decisions. Traditionally, North America and western areas of Europe have been seen as a high cost solution while Asia, Eastern Europe and Latin America were considered low-cost. The truth is, the fluctuation in costs is more staggered across the globe than what many have realized in the past.
Analysis by the Boston Consulting Group shows that overall costs are 10 to 25 percent lower in the United States than those countries residing in the world’s top 10 for the exportation of goods – including China.
An index created by the BCG displays the top 25 countries as it covers four economic points that determine costs: energy, currency rates, productivity growth and wages. Although not all exporting countries are included in the index, the ones that are make up approximately 90 percent of the exports within the world.
In light of a growing economy, many businesses have an optimistic view of the future. According to PricewaterhouseCoopers US, 82 percent of manufacturers in the US expect an increase of revenue over the next year. In terms of employment, 56 percent are considering adding additional workers to compensate for growth. When it comes to operational spending, 75 percent of manufactures plan to increase outlays.