Efficient U.S. factories compete with China's cheap labor
America is the new manufacturing magnet -- for American and Chinese automotive investors. What counts are total manufacturing costs, and America is starting to look very competitive. China’s manufacturing cost advantage over the United States has shrunk to just 1 percent, according to a study by the Boston Consulting Group published this year. What’s going on here? America’s higher levels of automation and lower input costs (such as electricity) have triggered dramatically better productivity. UAW wage concessions are playing a role, too.