The production of clothing, textiles, and footwear are labour cost intensive and is the reason why manufacturers are always searching for the next best place to set up factories. That’s why it’s striking that Merchant Housing International Ltd., the Hong Kong based company who primarily manufactures footwear for Wal-Mart Stores Inc. and Sears Holdings Corp., will open its first U.S. plant in Tennessee early next year. What’s more, over half of U.S. executives at manufacturers with sales over $1 billion are also making the preparations to re-shore. Bringing manufacturing back to the U.S. increases proximity to consumers and product quality, and lowers transportation costs and competitive wage rates. Making these key activity changes at Merchant Housing will ultimately improve Wal-Mart and Sears’ value propositions. This manufacturing renaissance is bypassing Canada though. Canada has been facing sharp declines in competitiveness since the Great Recession. Thousands of companies have disappeared, most noticeable are exporting manufacturers. The increasing value of the Canadian dollar, the slow productivity growth, and the lack of research and development is pulling Canada down in the share of global trade. Canada needs to invest in technology and equipment in order to be more globally competitive.Article: http://www.theglobeandmail.com/report-on-business/economy/why-the-rebirth-of-manufacturing-is-bypassing-canada/article14717261/