The economic boom is not derailed, not even close: Dow Chemical just commenced its $4 billion manufacturing facility in Texas, which becomes operational in 2015. Dow is in the process of moving virtually all prior Chinese manufacture capacity back to the US. Why? Because China has not been able to provide consistent reliable energy. Gee, that was important? The most recent estimates of United States manufacture efficiency estimates that today American Manufactured goods can undersell Japan and Europe by 25% to 45%, and that it is approaching parity with China and Mexico. GE was the original Chinese outsourcing company which began the movement in the 80s. They have been moving appliance manufacture back to the US for three years now. They discovered that product degradation began almost immediately from the time it was outsourced to China. GE has now realized a 20% savings by moving back to the US. Energy: The energy boom in the US is also set to grow exponentially in every single area. Citi GPS, Citigroups economic analysis group, estimates that by 2020, Americas energy revolution will support as many as 3.6 million jobs, both in the energy sector itself, and including the new manufacturing development it will support. The Financial Times recently reported on the concerns in European economic ministries at the rapid pace at which heavy industries are shifting operations to the United States to take advantage of its reasonable labor costs and inexpensive energy. Manufacture follows reliable energy now and the blend being created by the United States is crafting the cheapest, most reliable, energy environment in the world. Every auto manufacturer today is developing solar capacity, and the ability to source energy right at the manufacture plant is a huge benefit. The available land in the US, and the cheaper price of land also lends itself to the development solar technologies. In fact, the trade deficit my turn to a surplus in 2014. The US at that point will be exporting more energy than it imports and the US will be 100% self sustaining on energy by 2015. Added to this, the US now can provide knowable healthcare costs, something that it could never do before. The market exchanges provide structures and transparencies. It has also cut the costs of healthcare for manufacturers. In combination, the boom in manufacture will accelerate. The press reports by looking in the rear view mirror, have no ability or interest to report good news. No understanding of strategic, complex trends. Has no ability to call turns. But an energy independent US, with a growing share of energy being widely distributed has been a promise by every US President since the war. All the effort is finally coming to fruition. And with it US manufacture will be better than any time in its history. The news services would have no idea how to report this.
Posted on: Tue, 08 Oct 2013 16:41:07 +0000
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