Photo credit: Flickr Creative Commons via Georgie Pauwels
There is a boom happening in America, one that rivals the Industrial Revolution of the 1800's. It is quiet, but the American manufacturing sector is making a comeback in a huge way. The reasons for this can be debated, but several factors appear to be self-evident. No matter the 'primary' causes, it can't be denied that manufacturing in America is on its way back up.
Cheap energy is now and always has been the key to industrial success. Today, that energy is natural gas and oil. The invention of fracking technology and new methods for extracting oil from difficult places have had a massive effect on energy. Two rarely discusses aspects of this energy bonanza are conservation and recycling. Just a quick scan of the home page of the The US Department of Energy, shows the diversity and strength of the American energy sector.
Rising Costs Overseas
It happens every time industry moves off-shore for 'greener' (or cheaper) pastures. They end up returning to the US because those low prices don't last long and Americans are the largest consumers in the world. This was true when Taiwan and Japan received the benefits of U.S. manufacturing. It is happening now in China and India.
Although many CEOs will cry publicly that Americans are not as good as other workers, the American worker is more efficient than we might think. Susan Adams' article in Forbes magazine demonstrates this well, as she discusses the world’s most productive countries. And American workers are also some of the happiest according to Adams.
Regardless of which party is in control in Washington or the state capitols, there is a strong focus on the needs and concerns of business. From taxes and training to incentives and infrastructure, the governing bodies in the US are spending a huge amount of resources to help keep companies profitable. A look at the billions spent in Texas alone proves this.
The New Industrial Revolution is (for the most part) cleaner than the last one and is lacking some of the darker sides, like child labor and slavery. But it has all the earmarks of helping to set the US up for another century of manufacturing domination. Information for this article was provided by the professionals of Advantage Manufacturing Ltd., who specialize in aluminum fabrication in Edmonton.