digital divide network - article database

The story is similar for other emerging countries as well. In short, many of the factors that drew American companies to move their production to China and other countries are not nearly as compelling anymore.

American companies have also experienced additional challenges and difficulties from outsourcing their manufacturing overseas. Rising shipping costs have offset some of the savings from cheaper labor. Long supply chains have increased the risk of supply disruption, as companies found out following the Japanese earthquake and tsunami. Companies have also experienced problems with intellectual property theft in some foreign countries. In some cases, foreign companies that once manufactured products for a U.S. company now compete against that company with a similar product. Product quality has also been an issue in some cases.

At the same time, the U.S. has become more competitive. One big reason is cheap energy. The shale natural gas boom has resulted in an abundance of natural gas that has sent natural gas prices to some of their lowest levels in 10 years. Wholesale electricity prices have also benefitted from low natural gas prices and have plummeted roughly 50% since 2008 as well. Natural gas prices in the U.S. are now a fraction of the price in other parts of the world. This is a huge competitive advantage for energy intensive manufacturers such as chemical companies. Many chemical companies such as Dow Chemical are moving plants back to the U.S. to take advantage of the new abundant source of natural gas and the extraordinarily low prices. In January, Methanex Corp. decided to move its plant from Chile to Louisiana. Low energy prices were one reason Santana Textiles decided to build their $180 million plant in Texas rather than Mexico.
American steel makers such as U.S. Steel Corp. have also been big beneficiaries of cheap energy. If managed properly, America's vast supply of cheap natural gas will be a big draw for energy intensive producers to build or expand plants in the United States. visit here.. http://www.prlog.org/12109090-american-musical-supply-coupon-code-special-coupon-upto-60-off.html

The digitization of manufacturing is another key reason for America's increasing manufacturing competitiveness. Manufacturing is undergoing tremendous changes as advances in robotics, automation and 3D printing are revolutionizing manufacturing. In the article "A Third Industrial Revolution," The Economist writes, "Digitization in manufacturing will have a disruptive effect every bit as big as in other industries that have gone digital, such as office equipment, telecoms, photography, music, publishing, and films." Manufacturing is becoming much more efficient requiring fewer workers to produce a growing amount of goods. Decreasing labor costs as a percentage of overall costs reduces the advantage of lower wage countries. While factory workers in the U.S. are still paid much more than their emerging market counterparts, they also generally produce much more because of the greater automation in U.S. factories.