There’s been a lot of attention focused on what’s called the American Industrial Renaissance, or how the U.S. is regaining its competitive edge when it comes to making manufactured goods like cars and household appliances.
It’s an important trend for our country — it means more jobs, more business revenues, and a better life for American workers.
And, of course, it matters to investors – like our clients – who invest in American companies each time they buy shares of U.S. mutual funds.
So here’s some fascinating information from Bloomberg BusinessWeek:
“Manufacturing is slowly returning to the U.S.—and much of the action has been below the Mason-Dixon line. Changing conditions in the oil market and China have a lot to do with manufacturing’s resurgence in the South. In 2001, when China joined the World Trade Organization, the price of oil was $20 a barrel and the hourly manufacturing wage in China’s Yangtze River Delta was 82¢ an hour. Oil is now more than $100 a barrel and workers in the Yangtze make $4.93 an hour. The once enormous manufacturing advantage of the People’s Republic has in some cases vanished.”
“An April 2014 study by Boston Consulting Group found that the U.S. now ranks second only to China in manufacturing competitiveness among the top 10 exporting countries. The South has become ‘the cheapest place to make things inside the largest economy in the world.’ ”