America can manufacture at cost-parity with China

In a recent interview, Matthew Chang, founder of Chang Robotics, addressed the possibility of American-made goods competing with Chinese-made products on a cost-parity basis. Chang explained that automation is enabling this potential shift, rather than increasing manufacturing costs due to the expense of American labor. He argued that while it's true that American labor is more expensive, automation has created a new advantage by shifting the focus of manufacturing expenses from labor to total production costs.

Chang highlighted a few key points to support his claim. First, he pointed out that the number of U.S. industrial robots has increased by 11% in 2025 to approximately 38,000, demonstrating a growing adoption of automation in American manufacturing. Additionally, the Bureau of Labor Statistics projects a significant increase in production job openings from 2024 to 2034, largely due to workers retiring and leaving their occupations.

Furthermore, industrial machinery mechanics - the people responsible for maintaining automated plants - are expected to be one of the fastest-growing occupations in manufacturing.

Chang pointed out a paradox in the current situation: while America is becoming more automated, China is also investing heavily in robotics. China installed 295,000 industrial robots in 2024 alone, significantly more than the U.S. However, Chang emphasized that automation alone does not grant a competitive advantage. Instead, it neutralizes previous structural disadvantages, as long as the U.S. deploys automation aggressively and builds a robust human infrastructure around it.

Chang asserted that the misconception that manufacturing should relocate to low-cost regions has been challenged by automation. The total cost of production now includes factors beyond wages, such as design, integration, power, programming, repair, and continuous improvement of the factory. Consequently, specialized workers – including electricians, engineers, technicians, and welders – have become a new constraint in American manufacturing.

This shift in the manufacturing landscape indicates that skilled trades are now critical infrastructure for the AI and robotics economy.

To remain competitive, companies should evaluate automation, talent development, and supply chain simultaneously instead of deciding on a manufacturing location first and addressing automation later. Ultimately, the factory of the future requires a workforce skilled in increasingly lucrative roles, necessitating continuous education and training for today's workers. In this new era, the country that can convert raw materials into finished goods at the lowest risk-adjusted total cost will emerge as the winner.