US manufacturing costs fall to levels as low as China

Estimates produced by a Boston based company suggest the cost of manufacturing goods in the US has fallen to levels that put them on a par with the giant economy of China. Fortune reports the estimated come from the consultancy company BCG, which places the accolades for the falling manufacturing prices in the US firmly on the shoulders of the controversial energy production method of fracking. The production of shale gas has been a major source of controversy across the world and has recently been halted in certain areas of the UK over environmental concerns, but the widespread use of the practice in the US has seen energy costs fall and production levels rise.

BCG claims the Chinese manufacturing costs are just five percent lower than those seen in the US and the gap will continue to draw closer in the coming years. According to Igor Cornelsen, Chinese manufacturing costs have recently been rising as the workers of the country call for higher wages to close the gap between the top earners and manufacturing workers as the US economy sees cheaper energy costs prompt a fall in overall costs for producing goods within the US. Across the European Union the use of fracking has been a controversial issue that has seen energy prices stay high and manufacturing costs continue to rise.