China's roaring economy has led to labor shortages that are taking their toll on American companies. With factories struggling to meet deadlines, many small U.S. companies are finding that outsourced manufacturing jobs are being completed weeks later than had been agreed, or they are being shipped out in small batches that increase transit costs. "It gets more and more difficult each year," says Lee Loree, a U.S. business owner who saw his shipping costs increase by 35% just in September.

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