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Cheap labour isn't cheap anymore.
I've been manufacturing in China for the last 5 years and wages have gone up about 4x compared to when I first started. Can you imagine if let's say your state's minimum wage going from $10/hour to $40/hour in 5 years? A lot of factories have closed down due to this main problem as standard of living continues to rise exponentially in China. Minimum wage has been increased at least once a year. Supply of workers are extremely low as the younger generations are less motivated to work in production. Many workers are seeing growth and opportunities in their own province and refuse to work in the southern provinces anymore. Workers are in extremely high demand which drives their wages up even more regardless of the minimum wages set.
Ask anyone in China and they will tell you its extremely tough to survive when the US/Europeans are still demanding an extremely low price. China is focusing more on domestic production and consumption. In less than 10 years, China is expected to surpass the US as the World's largest economy. No matter what, this will affect the world in terms of purchasing power and cost of living. Cheap shit won't be cheap anymore, it'll just be shit.
At this rate, I'll more or less be out of business within the next 5 years if I do not move my production somewhere else.
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@BMWclassicdivision
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