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Chinese Manufacturing at 11-Month Low

Chinese Manufacturing at 11-Month LowChinese manufacturing is at an 11-month low, an indication that forecasts of China’s manufacturing sector weakening could be coming true. This is obviously bad news for China, but is great news for students in the United States who are getting (or looking to get) training in skilled manufacturing.

China is a major competitor of the U.S manufacturing business, and for a time there was a trend of U.S. companies offshoring their manufacturing to China, due in part to a lower cost of labor.

The downturn in Chinese manufacturing could potentially create even more demand for skilled manufacturing workers throughout the U.S., adding to the already estimated 600,000 U.S. manufacturing jobs that are currently unfilled. 

Previously, we’ve brought you stories of American companies bringing their operations back from China, and even foreign companies that favor offshoring to the U.S over China or India. This recent news could mean more and more companies reshoring, thus creating more manufacturing jobs in the U.S.

The largest shipyard outside of Chinese government control, called China Rongsheng Heavy Industries Group Holdings Ltd., reportedly said this month that it is seeking financial help from the government as orders decline.

Exports from China also unexpectedly fell 3.1 percent in June from last year–likely another sign of manufacturing decline. Rising transportation costs to get products shipped back to market in the U.S. by sea, in addition to rising wages for Chinese workers, could also be contributing to the downturn.

With crude oil prices now above the important $100 per barrel threshold (a price that has not been breached since September of 2012), having manufacturing facilities in overseas markets is becoming increasingly less attractive. The current spike of $107 per barrel of oil worldwide is the highest in a 15-month period.

Hopefully, students who are unsure whether or not a four-year degree is for them will consider training in skilled manufacturing. By doing that, we think it’s a safe bet that they’ll be able to capitalize on the trend towards more and more jobs opening up in the U.S. manufacturing industry.

photo credit: Steve Webel via photopin cc

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