China slowdown threatens US factory revival

By John W. Schoen, Senior Producer

An emerging renaissance in American manufacturing is staring at the oncoming threat of a global economic slowdown.

After investing hundreds of thousands of dollars in high tech equipment last year, Drew Greenblatt’s manufacturing business is beginning to see a return on that investment. Business was up 20 percent in 2011 at Marlin Steel, which makes wire baskets for industrial customers.

Exports are helping a lot. Greenblatt’s company just shipped to China a $20,000 order made at his Baltimore, Md., factory with steel supplied by a mill in Illinois.

Low wages and low-cost manufacturing used to make Chinese markets tough for U.S. manufacturers to break into. Today, rising wages in China are giving American companies second thoughts about moving their manufacturing jobs to China, Greenblatt said. More >>