In our previous blog, we explored the booming manufacturing industry in North Carolina and South Carolina. What we learned from that research is that the resurgence in American manufacturing isn’t limited to the Carolinas—in fact, other areas of the country are benefiting from this new industrial production revival.
Across the U.S., manufacturing has been seeing growth for months, and some experts expect elements such as factory orders and increased employment to get even better moving forward, thanks to increases in manufactured exports. The Boston Consulting Group released an article that details expectations for an additional 5 million new manufacturing jobs by 2020. This surge is based on export increases and cost decreases.
Has the U.S. become the location for lower cost manufacturing that could make these theories a reality? A few years ago, the general consensus throughout the country would have likely been “no,” but that attitude has changed with the recent trend of major companies bringing production back to the U.S. In what is being called a manufacturing renaissance by some, BCG claims that the U.S. is becoming one of the least expensive manufacturing nations in the developed world.
“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 report said. “As a share of the U.S. economy… exports are at their highest point in 50 years.”
By the end of the decade, these exports have the potential to rein in anywhere from $70 billion to $115 billion on an annual basis. European and Japanese companies sending work to the U.S., along with the re-shoring of production from China won’t just be bringing in money for American manufacturers—but also millions of jobs. It’s clear that exports are the most important piece of the manufacturing puzzle.