I did some work with manufacturers who were in the process of moving manufacturing overseas some years ago. From my experience, the way the article presents the issue is detached from what really happens.
For instance, people look at a labor difference of $3 and $12, and assume that if these things were manufactured in the U.S. they would cost five times as much. But the thing is, labor is just one part of the cost. You also have things like R&D, advertising, raw materials, transportation, machinery, the cost of the manufacturing plant, etc. Some of those (like advertising) are going to stay the same no matter where you make your product, some would probably cost less overseas (real estate needed for factories), some would cost more overseas (transportation cost). There are also other issues that come up (like quality control issues) that come up when moving operations overseas that can be quite costly.
Here's the thing, though - let's say that a manufacturer makes a product for $10 and sells it for $12.50 - they're making $2.50 per unit sold. Now let's say that moving things overseas, when everything is taken into consideration, they can now make a product for $9.50, of which they keep 25 cents and pass the remainder 25 cents forward. Now they've increased their profit 10%, which is pretty big for them.
But what about the consumer? For simplicity, let's say that the 25 cents goes directly to them and the middlemen don't take a cut. And let's say that the final retail price doubles (the results would be even more extreme if they quadrupled like the article says). So the price goes down from $25.00 to $24.75 - they save 1%.
Now, obviously things are a lot more complex, and things are going to vary greatly depending on what's being manufactured. But from my experience, moving manufacturing overseas can often be profitable for companies while being only negligibly beneficial - or even detrimental (for instance, with poorer quality control) - for the consumers.