What Does the U.S, China and Mexico Have in Common?

When the book The World Is Flat came out everyone marveled that China or India was going to take all of America's jobs. So it got me thinking, what happens when a company or country suddenly does take a lead? Do they start to run in to rising costs? Higher demands from employees? Do they retain their edge or lose it?

In 2005 AlixPartners did a study and found that items entering from China were 22% cheaper than those produced in the U.S. By 2008 that gap had dropped to only a 5.5% edge to China. Hmm, is it still worth the trouble to do manufacturing outside the U.S.

Now an even more interesting phenomenon has happened. Mexico is now 20% cheaper for production than China!

So the cycle begins again. I bring this up just to remind you that what is will not always be. You need to constantly re-evaluate your business. Ask yourself, are you giving the best to your customers? Are you unique? Do you make them feel special?

For in the end, there will always be someone cheaper but the question is, where there be someone better?

Don't wait for your China or Mexico to come along and put you out of business. Start today to create that unique space that is solely yours.

Anne Warfield
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