It’s ironic. 2017 is all about reshoring jobs to the US. Sounds great as a cover. But the table of contents will tell you that the labor unions who want it most won’t benefit at all. You see, reshoring manufacturing from China or Asia isn’t going to create more jobs. All the work is going to be done by robots.
And since China’s CNY is dropping in strength against the USD, China’s current competitive advantage against the US is fading. But the US really isn’t doing much manufacturing at all. So who’s benefitting? Well, by the title of this blog post, you probably guessed. Korea. Korea has the advantage of being much friendlier with China than the US. So Korean corporations can manufacture in Korea and China with much less red tape. And they taking full advantage of that fact.
The most common industrial B2B goods are consumables. Korea manufactures Gaskets, Machine Parts, Rubber, Seals, and any other parts that wear down with higher quality than China. And the cost is not much higher.
That doesn’t sound like a big deal but in reality, Japan is much more expensive and Vietnam and Indonesia don’t exactly have the infrastructure to produce these industrial consumables yet. So Korea is perfectly suited to make industrial machinery. With conglomerates like Samsung, Hyundai, LG, Posco, and more all in this small peninsula, manufacturers have strong markets both near and wide.