Can the Big Shi…

Can the Big Shift in Energy bring a Return of Industrial Demand?

 
Outsourcing has become a dirty word in the 2012 election, in part, because over the last decade the US lost more than 5 million jobs to offshore emerging markets.  While politicians are busy scoring points about which party or players are responsible for these job losses, they are losing sight of a reversal of fortunes now taking place that offers the potential of bringing many of these manufacturing jobs back to the US—if we get our policy and political act together.

Accenture just released a new research report entitled “North America Flexes its Industrial Muscle” assessing the reasons for this change in global competitiveness that is pulling the US back into the game from productivity improvements from automation, rising wages in China and India reducing the US gap, low natural gas prices and abundant supply from shale E&P improve US competitiveness as a source of feedstock for chemicals and other manufacturing.  The US remains a large and attractive market and lower cost US production also benefits from lower transportation costs and a reduced carbon footprint.

The report says the US should not expect mass-produced commodities like electronics to be uprooted and rebuilt in North America.  That infrastructure is sunk, demand is expected to grow fast in Asian markets and the purpose of the capital invested was to build an exports-driven industrial base to fuel domestic economic growth. There is even good news in this continued Asian export market growth for North America. The revival back here at home is taking place in high value-added final assembly such as automobiles and in feedstock driven industries in chemicals, pharma and their research units.

Read more: http://oilprice.com/Energy/Energy-General/Can-the-Big-Shift-in-Energy-bring-a-Return-of-Industrial-Demand.html

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