New Manufacturing Math Starts To Favors U.S.
From the Harvard Business Review blog, “New Math Will Drive a U.S. Manufacturing Comeback” by Harold Sirkin and Michael Zinser of the Boston Consulting Group:
“Making the United States an even more attractive location for factories and investments is critical for the health of our nation. More domestic factories would help create more balanced trade flows and a more stable global economy. But company decisions on what and where to place production facilities, while influenced by many factors, ultimately depend on the math.
Thankfully, the math these days is starting to work in America’s favor again.
Assuming the trend continues, as we expect it to, the economic impact could be substantial, resulting in as many as 2 million, and possibly up to 3 million, U.S. jobs between now and the end of the decade. An estimated 600,000 to 1 million of these jobs would be directly in manufacturing, with the remainder in construction, orders for new equipment, supporting services, transportation and retail sales. This could increase U.S. gross domestic product by $100 billion, lower the non-oil U.S. trade deficit by 20% to 35%, and reduce unemployment by 1 to 1.5 percentage points.”
HT: Robert Kuehl