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Level Playing Field

January 15, 2013 Leave a comment Go to comments

We are rapidly approaching a level playing field for worldwide wages. From the Wall Street Journal:

While wage costs in the U.S. have been about flat in recent years, they have been rising 20% a year in China, a trend Mr. McNamara expects to continue for at least five years. He said labor costs for Flextronics rose about 30% last year in Malaysia and 40% in Indonesia.

Big global companies will take advantage of this, but they already put their resources in the most cost effective places. For all of the rest of the companies out there (small, medium, even most large companies) this is going to be an enormous shift. The ability to set-up, operate, and do business in a more cost effective environment in the U.S. will allow more companies to generate serious growth and great opportunities.


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