Manufacturing jobs may be on their way back from China as American business leaders rethink global outsourcing. Fortune magazine reports that high oil prices and rising labor costs in the PRC have managers contemplating a return to domestic manufacturing.

The soaring cost of transporting goods from China to the US has spurred companies like North Carolina’s Thomasville Furniture to return factory jobs to America. Other companies, like Wisconsin’s Regal Ware Inc., found that while Chinese labor is cheap, it isn’t efficient. Regal ended its 10-year experiment in China and brought manufacturing back to Wisconsin, regaining control over its supply chain. In fact, Regal just completed a deal to sell American-made cookware... in China!

Unfortunately, some manufacturers who find China to be too expensive are just taking their business to Vietnam and other developing nations. China is the world’s third-largest trading power behind the US and Germany, with total international trade of US$2.18 trillion.

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