As Developing Economies Grow, Global Value Chains Reach a Turning Point:
http://knowledge.wharton.upenn.edu/article/developing-economies-grow-global-value-chains-reach-turning-point/
"There is an enormous amount of change going on. The global supply chain is in flux," notes Wharton operations and information management professor Morris A. Cohen.
You see the disintegration or fragmentation of value chains in manufacturing," says Wharton management professor Ann Harrison. But in agriculture, you see the opposite going on. Agribusiness is becoming more and more integrated."
According to Wharton operations and information management professor Marshall L. Fisher, China "is no longer the cheapest place to produce things, and it has accelerated people's thinking about where to go from here." Indeed, while Chinese labor costs are growing 20% annually, wage hikes in the U.S. are inching up by 2% due to lack of jobs and the recession, Cohen notes, adding that "the labor advantage is eroding, and the tipping point" could bring jobs back to the U.S., a phenomenon called 're-shoring.'
Cybercollegially,
Charles Wankel
St. John's University, New York
http://facpub.stjohns.edu/~wankelc
IMD-L list director