Duff & Phelps Experts Featured in IndustryWeek Discussing Manufacturing Rethinking the Supply Chain During COVID-19

Gregory Burkart, Managing Director and Global Leader of Duff & Phelps’ Site Selection and Incentives Advisory practice, and Kurt Steltenpohl, Managing Director in Duff & Phelps’ Transaction Advisory Services practice and leader of Operations Consulting for the firm’s  Corporate Finance practice, recently published an article in IndustryWeek titled, “Rethinking the Supply Chain During COVID-19.”

For decades, labor cost differences have been a primary influence in the continuous shift of manufacturing production from the U.S. to China. In 1980, the cost of labor in the U.S. was more than 30 times of that in China. As China became less agrarian and more of its population migrated to large cities to work in new factories, wages rose dramatically. By 2018, the U.S.-China wage gap had closed to only four times, rising approximately 200% in the U.S. but over 2,000% in China over nearly 40 years. Yet, despite the sharp rise in Chinese manufacturing wages over the last 20 years, offshoring continued. The U.S. manufacturing industry suffered, including millions of lost jobs, stagnant inflation-adjusted wages and a decline of the middle class.1

The authors wish to thank Duff & Phelps’ Danielle Dipietra, Meegan Spicer, Anthony Schum and Wesley Michael for their contributions to this article.

Read the full IndustryWeek article here.

Sources
1.Rakesh Kochhar, “The American middle class is stable in size, but losing ground financially to upper-income families”, Pew Research Center, September 6, 2018, https://www.pewresearch.org/fact-tank/2018/09/06/the-american-middle-class-is-stable-in-size-but-losing-ground-financially-to-upper-income-families/

2020-08-27T00:00:00.0000000 0001-01-01T00:00:00.0000000 /about-us/news/manufacturing-rethinking-the-supply-chain-during-covid-19 /-/media/assets/images/news/featured-images/2020/manufacturing-rethinking-supply-chain-during-covid-19.jpg news {B062D54C-1425-4A04-8F9F-95EA14068E6D} {B082EC47-1E60-4D6E-AF50-251074575E23} {D59CA77E-C551-45A3-BE89-F567210C5A60} {D3AE3EC6-3254-4441-B111-1AF8D558906C} {C987DF12-8CE8-4A15-89E5-6BCA4C89833B} {83B98E68-2874-4F0A-91E8-DCFFFBBE1DB0} {FEC5637C-548E-42EA-B743-443AFC8B4024} {FA6E172F-E550-44BD-AE45-DE715203DB8E}

Other Areas We Can Help

Valuation Advisory

Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.

Valuation Advisory

Corporate Finance

Comprehensive support throughout mergers and acquisitions and other corporate transactions.

Corporate Finance

Transaction Advisory Services

Seamless analytical advisory through the deal continuum, from transaction origination to closing.

Transaction Advisory Services

Disputes Consulting

Providing expert analysis and testimony in the context of litigation, arbitration and other commercial disputes.

Disputes Consulting

Supply Chain Due Diligence

Offering overt and discreet investigations to uncover hidden compliance and reputational issues.

Supply Chain Due Diligence

Kroll Security Risk Management

Helping clients anticipate/respond to a myriad of facility, operational, and employee safety challenges.

Kroll Security Risk Management

News