- The real estate bust is a boom for USA firms seeking land and facilities. Rapid real estate inflation in Asia only makes American space costs that much more attractive.
- Borrowing costs in the USA have never been lower and with banks beginning to lend the cost of financing plant & equipment has never been more affordable.
- The exceptionally low cost of natural gas as a fuel source gives American firms a huge advantage over energy intensive production overseas. New technology for efficient co-generation means that natural gas is also a fuel for lost cost onsite electricity. And, excess electric production can be sold back to the grid.
- USA is safe! The ability to secure intellectual property, such as patents, designs, formulas, processes and methods, etc., is made easier on USA soil. Plus law enforcement and the legal system is on "our side!" Spies aren't as available and can't hide out as easily either.
- Labor has done a 180 in the USA. Thanks to 9% unemployment, workers and unions have come to realize job security is better when they work with their employers to make better products and compete internationally.
- American technology can help American manufacturers. In conjunction with labor, technology is helping USA firms to have one of the most productive workforces on the planet.
- Government gets it - American manufacturing means American jobs - and that means votes! Bring the jobs home is the mantra of both parties. Government, at every level, can do more to get out of the way and help manufacturers, but at least they see the connection between regulation and jobs.
- The "Made in the USA" brand is a positive marketing advantage. Consumers are more inclined to "buy America" to "support America" than in recent memory. Chrysler tapped into this spirit in their 2012 Superbowl half-time ad!
- Foreign firms that want to grab a share of the giant USA market see putting production in the USA as a critical part of their strategy. USA firms save on shipping costs and time to market when they bring production home. Both reduce the risk of currency fluctuation by keeping the supply chain in the USA.
- As the manufacturing jobs come home the boost it gives to the economy feeds on itself!
I write to think. I speak my mind in order to help organize my thoughts. Take it or leave it. (I make no claim to any the graphics on this blog.)
Thursday, February 9, 2012
Advantage USA
Moving forward, as the economic recovery picks up steam, one of the bright spots is American Manufacturing. For too long the trend has been for USA firms to move production offshore to Asia. The tide is turning, and American Manufacturing has a number of advantages:
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