Governors in southern states say there’s an upside to stagnant wages – they make the region more competitive for manufacturing jobs. Members of the National Governor’s Association met in Nashville today to share economic development ideas.
Instead of trying to stem the tide of plants moving overseas, governors are discussing how to lure companies back from Mexico and even China.
The relative weakness of the dollar is one advantage to U.S. production right now. Another is the high cost of shipping across the ocean. And then there’s the so-called “wage gap,” which is shrinking as wages in China rise. Tennessee Governor Bill Haslam says the combined factors are making companies reconsider offshore production.
“Our opportunity now is to go out and be aggressive on manufacturing where four or five years ago people were giving up on in this country.”
A well-known manufacturing consultant – which had long been telling its clients to build factories in China – is now praising places like Mississippi. A recent report from Boston Consulting Group highlights that state’s lack of unions and “minimal wage growth.” Governor Haley Barbour says several companies with operations in Mexico have chosen to open plants in Mississippi.
On Air - 90.3 WPLN-FM