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The manufacturing renaissance in the U.S. has been the talk of many around the globe and finally there’s news that it will happen finally. The main concept of this project is that cheap, plenty natural gas will drive major manufacturers to move production to the United States if not expand in order to at least save on energy costs a bit. Many firms in the U.S. that have been operating in other countries have even announced already that they’re moving back some of their operations to the country.
Yes, when it comes to labor, there’s no denying that it’s cheaper in other countries, but according to some analysts it’s not really that much expensive as it used to be in the U.S. As a matter of fact, productivity is even way better in the country with more automation that help a lot in getting things done fast and easy.
The current U.S. dollar strength can be a spoiler though granting that it continues because this will lessen the global competitiveness of exporters based in the U.S. Thus, the dollar strength might lead to giving importers a competitive edge.
Currently, there’s finally an indication that the mounting of the U.S. Manufacturing Renaissance will be happening, it’s just that there’s no sure date yet as to how long it last. The U.S. Manufacturing Renaissance will likely bring about lots of jobs for the Americans, but there’s no clear data yet as to how many jobs will come back to the United States.
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