Is manufacturing coming back in America? Forbes.com says yes. A resounding, boldfaced and all caps YES!
The magazine reported in September that the Boston Consulting Group estimates that manufacturing jobs will grow by 5 million over the next decade.
“With ongoing worldwide labor riots, rising global wages and equalizing expenditures, the cost advantages for American companies to produce goods overseas are shrinking,” the article reported. ”And according to BCG, a mass migration of jobs back to the United States will be, and already is, taking place.”
Manufacturing will grow also due to cheaper natural gas prices (due to the considerable shale stores and fracking). Natural gas prices could remain 50-60 percent less expensive in the U.S. compared to Europe and Japan
In addition, labor costs in other developed countries will be 20-45 more expensive compared to the costs of hiring U.S. workers.
The article states that the U.S. could get $130 billion in additional exports from other nations.
What’s more, the article continues, the costs of manufacturing in China by 2015 will be just 7 percent lower compared to the cost in the U.S.
AS for what’s happening to manufacturing in the Inland Empire, the Daily Bulletin also reported in September on the results of a manufacturing survey conducted by Cal State San Bernardino. The survey showed that the local Purchasing Manager’s Index for August was 52. Any number greater than 50 indicates that manufacturing is growing.
The article quoted Barbara Sirotnik, co-director of the university’s Institute for Applied Research (author of the study), as saying that the “PMI is in some ways in a holding pattern, but there are positive things in this report.
“Production is up, which is good for now, but more importantly, new orders are up, which portends well for the future,” she added.
Have you noticed an uptick in new orders? If so, if you need staff to help you meet production needs, call the recruiters at Arrow Staffing. We can help you find skilled and reliable workers for your Riverside or San Bernardino county company’s temporary and direct-hire needs. Contact us today.