Manufacturers did not go offshore to make the same margins. The cost of goods sold and retail prices really have nothing to do with each other. The cost of goods sold is measured as contribution margin and like any company the higher the CM the better. Retail pricing is what the market will bear based on the value proposition of the product..ie quality, service or reliability.
Companies are finally seeing that the costs associated with offshore manufacturing are far greater than initially calculated. The cost of shipping has increased, scrap rates, warranty work, training, logistics management, supply management, and the one we all hate...cost of quality. Hence many companies are in fact retreating to N. America and using technology to lower the cost of goods sold instead of cheaper labour. The really smart manufacturers are increasing the number of key performance indicators (KPI) and starting to measure things like machine and labour efficiencies, and setup variances. Productivity is key.
Good news for Canada is the exchange rate...yes i know it kills us for buying US products, but US companies see Canadian businesses as a great place for sourcing product. This good news for Canadian manufacturers and their employees. US companies get roughly a 15% discount on exchange alone when they buy Canadian.
Sorry for the long winded explanation...I spent a lot of time working to fix manufacturing companies that were too fat and inefficient to make money.