CHARTS: How Wages Are Fueling The American Industrial Renaissance

Rich Bernstein of of RBA Advisors just published a new white paper titled The American Industrial Renaissance.

“It is unlikely that the United States will again be the manufacturing powerhouse that it was during the 1950s and 1960s, but many factors are suggesting that the US industrial sector will gain market share over the coming decade,” he writes.

He argues that the the U.S. has competitive advantages versus much of the world in three crucial categories: wages and productivity, energy costs, and political stability.

Regarding wage growth – a major component of manufacturing costs – Bernstein provides two charts to demonstrate cost acceleration in other countries.

Here’s the U.S. versus China.

china wages

Photo: Richard Bernstein Advisors

And here’s the U.S. versus the rest of the world.

world wages

Photo: Richard Bernstein Advisors

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