China's manufacturing industry is facing a double crisis: First, the flow of low-end manufacturing to Southeast Asia, South Asia, the industry chain is interrupted; intelligent era of some of the available machines manufacturing back to the United States.

November 28, Japan and Japan Securities Capital Markets Inc. reported that the Preliminary indications are that the Southeast Asian countries began to overtake China as the low-cost manufacturing center, and this trend is likely to accelerate in the next few years, China may lose in the next five to ten years "world factory" status.

In recent years, China's rapid growth in wage levels, the baton of the manufacturing sector is transferred from China to lower the cost of the hands of the ASEAN countries ", namely, Thailand, the Philippines, Vietnam, Indonesia, Laos, Cambodia and Myanmar. In the past 10 years, most of the time, the the Vietnam labor-intensive industries such as textiles and clothing export growth than China, the past two years, Cambodia's export growth than China.

The latest issue of the Atlantic Monthly magazine as the theme to U.S. manufacturing reflux, also published two article to flow to changes in the analysis of recent manufacturing trends. Its purpose includes two aspects: on the one hand, the Chinese human cost increases will lead to cheap advantage to weaken, the outflow of low-end manufacturing; the other hand, the re-industrialization of the U.S. smart era, this wave of domestic manufacturing recovery is different characteristics, not a simple reflection of the economic cycle, this change deserves our close attention to.

The insourcing prosperity, charlesfishman ge industrial park in Kentucky from the rise and fall since the 1950s, as an example, describing the prospect of a recovery in the U.S. manufacturing sector.

The industrial park was built in 1951, the 1973 peak of 23,000 workers. To the 1980s, with the decline of the U.S. manufacturing sector, the number of workers in this park has been lower than the 1955 level. To the 1990s, this park has become ge tasteless, any ceo consider the sale of the park. This is a typical story of American manufacturing sunset. But what is unexpected is that this year, the park for a new production line opened: in February a production line dedicated to the assembly of the latest generation of low-energy water heater, used instead of ge a contract factories in China.

Exactly what factors make ge can resist cheap and efficient labor recognized it? Provided in this case the answer is technological innovation and energy consumption. This geospring in the top of the water heater is a bunch of wiring the control panel, many years engineers have been unfamiliar prototype arrived in Kentucky production line, unable to do anything, but the subsequent free working atmosphere, the team found a revolutionary solution: re-design every five parts can be removed to a 25% decline in the cost of raw materials, assembly time from 10 hours to 2 hours. The last arrived at the point-of-sale price dropped from $ 1,599 to $ 1,299. This case is behind several large environmental change: oil prices, transport costs have doubled and redoubled; U.S. natural gas boom of the U.S. factories reduce energy costs, which is also the main reason the United States does not appear to 1970s stagflation; price of labor in China rise; U.S. unions in recent years, the policy adjustment, and the productivity of American workers to improve declining labor costs in the proportion of products.

Since the 1980s, the U.S. industry to outsourcing as a panacea, the cost of decreased profits rise, which also have a considerable herd mentality at work. Today, manufacturing wind began to significant changes in manufacturing people can start to do homework. Of course, some labor-intensive industries such as the garment industry, I am afraid that is no longer possible in the United States, the opportunities to climb the second.

Manufacturing insourcing yet large-scale phenomenon, whether it will be further extended in the United States, it remains to be seen. In any case, with the advent of the era of intelligent manufacturing and new energy era, some intelligent manufacturing re-transferred back to the United States is the trend.