It wasn't exactly an amazing revelation when an economist at the Bank of Nova Scotia reported that auto parts makers producing high labor content products will have an increasingly difficult time competing with the low-wage countries such as China.
It wasn't exactly an amazing revelation when an economist at the Bank of Nova Scotia, after examining wages around the world, reported that auto parts makers producing high labor content products will have an increasingly difficult time competing with the low-wage countries such as China. With hourly manufacturing wages averaging $1.30 in China, $3.20 in Mexico, $23.80 in Canada, $23.90 in Japan and $33.60 in the United States the conclusion is patently obvious. The report also noted that wages represent about 15 percent of overall costs for parts makers in the United States and Canada while materials costs represent about 60 percent.