Boston--Issues about the return of manufacturing to the United States EnglishMade in America AgainWhy Manufacturing Will Return to the USAUGUST 25 2011by Harold L Sirkin Michael Zinser and Douglas Hoh

s, the cost of shipping is becoming a larger factor in total production costs, and the rising cost of oil is increasing this burden. As a result, it is becoming more cost-effective to manufacture goods closer to where they will be consumed.

l The U.S. has made significant strides in increasing productivity and efficiency in manufacturing, and has a highly skilled workforce. This is particularly true in industries such as chemicals, machinery, and transportation equipment.

l The U.S. has a stable business environment, with a transparent legal system and protection of intellectual property. This provides greater security for businesses operating in the U.S. compared to other locations.

l The U.S. has abundant and relatively low-cost energy sources, particularly natural gas. This provides a competitive advantage for energy-intensive industries such as chemicals, plastics, and metals.

While the shift in manufacturing back to the U.S. will not happen overnight, it is clear that the cost advantage of manufacturing in China is rapidly shrinking. As companies weigh the benefits of lower labor costs against factors such as shipping costs, productivity, and energy costs, many will find that manufacturing in the U.S. makes more sense. This will be a boon for the U.S. economy, creating jobs and boosting economic growth