Is Record Investment From China The Answer To Manufacturing Growth?

Why Is America such a profitable and productive place for Chinese companies?

In global manufacturing and shifting economic powers, China regularly gets a lot of headlines. Whether American factories manufacture #3 steel washers, household furniture, wholesale clothing, or packaging and shipping materials, there has been a great deal of pressure due to competition from China. Production lost overseas has resulted in job loss, poor sustainably, and a number of other issues that weighed on local and larger economies.

Bringing Jobs To Communities That Need Them
But now, China may play an active role in bringing jobs back to American communities that need them most. As detailed on Manufacturing.net, a Henan Province, China company is now bringing new jobs to one county in Alabama. Henan’s Golden Dragon Precise Copper Tube Group opened a plant in Pine Hill this past May. The plant will bring more than 300 jobs to an area in great need of employment opportunities.

Billions In Investment
This most recent investment in America labor is just one example of a trend that’s starting to take place in other areas of the United States. According to the Rhodium Group research firm, the United States has seen a record of $14 billion of investment from Chinese companies and the employment of more than 70,000 Americans.

What Makes The U.S. A Place For Investment?
Why are places like Pine Hill and other American communities looking so prospective to Chinese companies that are ready to invest and produce? The Manufacturing.net article goes on to list a shrinking wage gap, lower energy prices, and the shifting of currency markets as reasons for the U.S. becoming an appealing place to set up shop. Communities are certainly doing what they can to extend invitations with local bodies of skilled workers, low cost of labor and land, as well as homegrown hospitality.

All Types On Production In Many Different States
Chinese companies have brought more than just metalworking jobs to the U.S. 3D printing, glassmaking, textile manufacturing, and refinery equipment jobs have been moved to Ohio, Tennessee, Texas, South Carolina, and others. These investments could help to shift the American economy by bringing jobs to communities that need them and for the fact that Americans buy a great deal of Chinese goods. If those goods are produced here at home, the U.S. will also be doing more to invest in itself.

Benefits Beyond Cost Savings Alone
Chinese companies and entrepreneurs are seeing benefits from such arrangements for reasons that go beyond cost savings. As China seeks to develop more sophisticated and in-demand products, there appears to be advantages in moving closer to their U.S. customers. As shoe factory entrepreneur from Hong Kong, Loretta Lee expresses “Being close to the marketplace is good for everybody.” Do you agree?

What Do You Think?
What are your thoughts on increasing investment in U.S. labor from Chinese companies? Do you think these investments will give a significant and much-needed boost to U.S. job growth and the economy? Is it too early to celebrate any investments when these developments could go just as quickly as a few factors change? Is this type of investment a disadvantage to genuine America wage growth and more secure prosperity in the global marketplace? Comment and tell us what you think.

Article Sources:
http://www.manufacturing.net
http://www.uscnpm.org

Camryn Shea
 

Is a longtime business consultant and a writer who loves to read about the Maker Movement that’s been made possible through technology. In her free time, she enjoys antiquing and touring vineyards.

Click Here to Leave a Comment Below 4 comments
Kaye

The manufacturing of steel washers seems to be a core industry in the United States. I would venture to say that this is a win – win deal for both the U.S. and China. This brings many jobs to growing communities that need a reliable infrastructure. I say, “why not? If you can’t beat them on the global industrial scale, join them – or in this case, welcome them with a big “arigato (I hope I spelled that correctly).

Reply
Harold

U.S. plastics manufacturing, especially for commodity goods, seemed destined for the same fate of the dinosaurs just a few years ago. How things have changed. A small, rapidly growing toy manufacturer in New England is pulling tools from China and is establishing manufacturing for the first time in a new building in the United States. A major global electronics contract manufacturer with no U.S. production footprint is now establishing its first American molding plant at the request of a Fortune 500 retailer that wants to expand its “Made in the USA branding.

Reply
Moses

It would seem that Chinese investors are not just pumping money into industry. The Chinese shopping spree of American real estate is ramping up, with buyers focused on more expensive homes in dense urban areas in California, New York and Washington State. My understanding is that Chinese money is flowing into the U.S., driven by a favorable exchange rate, increased access to credit and desire for secure investments.

Reply
Filiberto

This development is not exactly a secret. Chinese direct investment in the United States could hit a record high in 2012, according to some research reports I came across. This year’s pending multi-billion dollar acquisitions include Dalian Wanda’s $2.6 billion dollar bid for movie theater chain AMC and Chinese aerospace manufacturer Superior Aviation’s $1.8 billion bid for Wichita, Kan.-based aircraft maker Hawker Beechcraft. Whatever bolsters the economy is a good thing as far as I’m concerned.

Reply

Leave a Reply: