Downward pressure on salaries in the US’s manufacturing sector will result in less offshoring of jobs to China, according to David Leyshon, managing director of technical recruiter CBSbutler.

Leyshon’s comments follow a report from the Boston Consulting Group, which predicts that by 2015, due to good productivity growth and relatively low pay, the US will move ahead of China as a maker of goods to be sold within North America.

Leyshon told Recruiter: “That is quite an aggressive timescale. In China, there is rapid inflation and increase in operating costs, particularly within electric goods where the skills required are becoming progressively more valued and therefore we are seeing quite an increase in salaries. There is wage inflation.

“Energy costs are increasing significantly and China is paying through the nose for its oil & gas and commodities. We are seeing rampant inflation, which is underpinning this forecast.

“I can see more manufacturing being retained in the domestic market of the US and less offshoring. There will be less work passed out to China, although there will be other cost areas that no doubt will be outsourced. There will be more retention in the US market; ultimately that is what the US would like because it will boost their employment.”