Made in America, a Study on the Resurgence of U.S. Manufacturing

Over the past decade we have seen highly publicized announcements of factories closing or moving overseas so it is easy to see why so many people think that U.S. manufacturing is on its deathbed; however, a study released by the Boston Consulting Group (BCG) proves otherwise and explains why we are about to experience a resurgence of U.S. manufacturing. The Made in America Report (PDF) found that the United States is expected to see a resurgence in the manufacturing industry over the next five years. BCG estimates that up to 800,000 manufacturing jobs will return to the U.S. by mid-decade, with a multiplier effect creating 3.2 million jobs in total. Some highlights of the report include:

• Despite the trend of outsourcing to China, the value of U.S. manufacturing output increased by one-third from 1997 to 2008
• Within five years the total cost of production for many products will be only about 10 to 15 percent less in Chinese coastal cities than in some parts of the U.S.
• Rising Chinese wages, higher U.S. productivity, a weaker dollar and other factories will virtually close the cost gap between the U.S. and China for many goods consumed in North America within five years
• U.S. manufacturing output is almost two and a half times its 1972 level in constant collars

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Burke Development Incorporated, BDI, is a nonprofit 501c3 organization supported by private and public funding that is charged with accelerating economic growth in Burke County. BDI works with industry leaders, site selection consultants, existing businesses, government agencies and other entities to promote growth, innovation and sustainability in Burke County. For more information about BDI visit www.BurkeDevInc.com.