US low manufacturing wages and global supply chain impact

Posted on March 18, 2012 by aviyer2010
 An article in the Wall Street Journal (March 17,2012) describes manufacturing wage rates in Indiana of $12/hour with no unions in Muncie, IN, compared to twice that rate in Caterpillar’s Canadian plant. The impact – closure of the Canadian plant and expansion of the Muncie plant. Is this low wage, no union, low state corporate tax rate competitive success for US manufacturing a sustainable advantage ? Will these lower wages and smaller tax base enable local governments to maintain required services – and will voters vote with their feet as the economy improves ? Do you expect low wages and worker schedule flexibility to become the norm for US manufacturing employment ?
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About aviyer2010

Dean and H. William Lichtenberger Chair in Management at the School of Management, University at Buffalo, State University of New York.
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