Source: www.epa1973.com

As a country with a service-oriented economy, the United States is a leading country in terms of research and development (R&D) and technological innovation. Currently, the United States is setting a target to regain its superpower in manufacturing, and is actively developing its manufacturing industry. As we could see from the rising cost of the Chinese labour market in the past two years, it is possible that the United States will bring back its manufacturing sector.

Regarding the impact to China mould industry caused by the returning American manufacturing industry, experts say, “Currently the impact is minimal, as the China mould industry still has a cost advantage over the US. If the American companies produce the moulds locally instead of having the Chinese companies producing it, the cost would still be higher. But in the long term, the impact wll be obvious.”

Although domestic moulds are relatively cheap and has a low cost advantage over other countries, it is actually a result of over-competition. In the following three to five years, competition between the tooling companies will exacerbate as the labour cost increases, resulting in further profit reduction. This vicious circle would make a lot of companies that lack the funds for innovating and upgrading its technology face the risk of obsoleting.