Update – And with it will come higher workers comp premium revenue.
The most comprehensive report on the resurgence of American manufacturing is in this month’s Atlantic magazine. (Over at WorkersCompInsider, Julie Ferguson beat me to the punch on this piece – Julie has quite a bit of insight into the trend and other reports as well…
Among the many companies bringing jobs back from China, Mexico, and southeast Asia are GE (appliances), .
Manufacturing jobs are returning to America from overseas for multiple reasons (paraphrased from Atlantic and other sources) –
- Transporting stuff in oil-powered ships is much more expensive these days; oil prices are three times higher than they were 2000
- The natural-gas boom in the U.S. has greatly reduced US manufacturing’s energy costs; costs are much higher in Asia
- Wages in China are rising 18 percent a year, and by 2014 wages around Shanghai will be 60% of those in Alabama.
- American unions are changing and adapting, getting more flexible and working much more closely with management to drive “lean manufacturing.”
- U.S. labor is getting more and more productive, reducing the percentage of manufacturing costs consumed by labor.