Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

8/28/2013 (2 years ago)

Catholic Online (www.catholic.org)

Export manufacturing is the largely unsung hero of the economic recovery

Little things - mean an awful lot. Export manufacturing has become the unsung hero of the economic recovery, a new study shows. As production costs continue to drop, it's once again profitable to declare - "Made in the USA."

The U.S. is luring new businesses due to lower costs of labor, (adjusted for productivity), natural gas and electricity.

The U.S. is luring new businesses due to lower costs of labor, (adjusted for productivity), natural gas and electricity.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

8/28/2013 (2 years ago)

Published in Business & Economics

Keywords: Domestic production, foreign export, employmwent, projections


LOS ANGELES, CA (Catholic Online) - Those who bemoan the flood of products "Made in China" goods may soon need to find something else to complain about.

The U.S. is fast becoming one of the lowest-cost countries for manufacturing in the developed world, according to the Boston Consulting Group, or BCG. The group argues that average manufacturing costs in Germany, Japan, France, Italy, and the U.K. will be 8 to 18 percent higher than in the U.S. by 2015.

According to the BCG report, export manufacturing is vital to the nation's economic growth. "Despite all the public focus on the U.S. trade deficit, little attention has been paid to the fact that the country's exports have been growing more than seven times faster than GDP since 2005."

The group also found that the U.S. is luring new businesses due to lower costs of labor, (adjusted for productivity), natural gas and electricity.

A Markit report released last week proved that U.S. manufacturing activity hit a five-month high in August as hiring picked up and new orders increased at their fastest pace since January.
BCG's report argues that we are currently just witnessing the beginning of a major shift in global manufacturing.

"Over the past 40 years, factory jobs of all kinds have migrated from high-cost to low-cost countries," Harold L. Sirkin, co-author of the report said.
 
"Now, as the economics of global manufacturing changes, the pendulum is finally starting to swing back. In the years ahead, it could be America's turn to be on the receiving end of production shifts, as more companies use the U.S. as a low-cost export platform."

BCG is optimistic that the U.S. will capture between $70 billion and $150 billion in annual exports from other nations by 2020. Two-thirds of these export gains emanating from production shifts to the U.S. from leading European nations and Japan.

The group predicts that by 2020, with more production work shifting back to the U.S. from China, between 2.5 million and 5 million American factory and service jobs could be created.

Will Happy Days be here again? BCG also believes that would mean the U.S. unemployment rate could drop by up to three percentage points from its current rate of 7.4.

"It's difficult to gauge the extent to which the U.S. economy will benefit and over what time scale," Chris Williamson, chief economist at Markit said, adding, "It is becoming increasingly evident that many companies are shifting production back to the U.S. from low-cost countries, notably China, as the advantages of having a production base in these countries fades or are re-evaluated."

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Business & Economics

Islamic State attempts to replace the U.S. dollar with gold coins Watch

Image of A five denar piece featuring a picture of seven wheat stalks, representing the

By Kenya Sinclair (NEWS CONSORTIUM)

The Islamic State has announced it will be producing gold currency with the goal of weakening the dollar. LOS ANGELES, CA (Catholic Online) - A video posted Saturday, August 29th by the Islamic State warns that replacing the dollar will be "the second blow to America's ... continue reading


Art collectors seek liquidity as market plummets Watch

Image of Picasso piece auctioned for a record $179.4 million.

By Atarah Haely (NEWS CONSORTIUM)

Inquiries about art loans reportedly increased after global equities plunged. The unfortunate event led many to view their collections as assets and investment to cash-in.  MUNTINLUPA, PHILIPPINES (Catholic Online) - Bloomberg Business reports many collectors and ... continue reading


BIRTHING PAINS - America on brink as markets plunge Watch

Image of Market collapse is just one of many signs that the end is approaching. What comes next?

By David Drudge, Catholic Online (NEWS CONSORTIUM)

The U.S. stock market opened with a bang on Monday, and it appears to be the same sound you hear when something catastrophic happens to your engine. Several commentators have already dubbed the day, "Black Monday" as the market appeared to be on track for its largest ... continue reading


FINALLY: Researchers reveal that sex does not sell Watch

Image of Sex and violence is not an edge in advertising.

By Linky C. (NEWS CONSORTIUM)

Maybe sex doesn't sell after all. This is what studies reveal in a recent academic journal released by the Psychological Bulletin. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Violence and sex in commercials does not appear to sell anymore. Compared to themes and ... continue reading


3 great tips on how to spot an online purchasing scam Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

With a growing population of people having internet access worldwide, there are a lot of businesses outsourced from the World Wide Web. Online shops sprout left and right because of easy access and an almost free platform, but limits in security are present. If ever ... continue reading


BLEEDING U.S. DRY: Federal taxes draining as much as $17,955 per worker Watch

Image of Tax revenues are about $183,397,970,000 in constant 2015 dollars from the $2,489,016,030,000 in revenue that the Treasury collected for 10 months in fiscal 2014.

By Catholic Online (NEWS CONSORTIUM)

They are bleeding the U.S. - and us, dry with massive amounts of taxation. The federal government collected a record of approximately $2,672,414,000,000 in tax revenues through the first ten months of fiscal 2015. And yet - that national deficit just keeps on getting ... continue reading


National debt frozen at $18,112,975,000,000 for 150 days Watch

Image of Treasury Secretary Jacob Lew explained in a letter dated March 13 that some steps the Treasury would take during the debt issuance suspension period.

By Catholic Online (NEWS CONSORTIUM)

Treasury Secretary Jacob Lew has sent out a letter to Congressional leaders telling them that he was extending a "debt issuance suspension period" through October 30. The amount of the federal debt subjected to a legal limit set by Congress closed on Monday, August 10, ... continue reading


America needs Catholic leadership now, and here's how you can make it happen Watch

Image of Rallies have erupted across the country blaming the wealthy for the plight of the poor, but the truth is, everyone is to blame. Regardless of blame, it's time to talk about what to do, and that talk should be informed by Catholic teaching.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

The stock market is poised for a collapse and that's not a good thing for American jobs. As growth slows and the risk of another recession looms, Americans are left to wonder where the good times have gone.  LOS ANGELES, CA (Catholic Online) - Americans are barely ... continue reading


Pope's environmental encyclical clashes with Catholic Church's investments in oil Watch

Image of The pope's encyclical has prompted debate in Catholic organizations and other churches about divestment. To date, many major American dioceses have resisted the push.

By Catholic Online (NEWS CONSORTIUM)

It's a conflict of interest that concerns many. Pope Francis, with the release of his encyclical, called attention to world ecology and how much climate change - as well as the exploitation of the poor, hinges on "highly polluting fossil fuels." While this is ... continue reading


Print Struggles: Internet becomes United States' Number One source for news Watch

Image of Newspapers in seeing the digital revolution have now since gone online.

By Catholic Online (NEWS CONSORTIUM)

When people in the United States want to hear about what's breaking in the news - they turn not to newspapers or TV, but online news sources. The immediacy of online news and its ability to instantly update stories while they happen has many other forms of mass ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, First Thessalonians 5:1-6, 9-11
1 About times and dates, brothers, there is no need ... Read More

Saint of the Day

Saint of the Day for September 1st, 2015 Image

St. Giles, Abbot
September 1: St. Giles, Abbot (Patron of Physically Disabled) Feast day - ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter