This is a really good article from the Atlantic talking about companies shifting manufacturing back to the United States from overseas. There has been a bunch of articles lately about the shifting dynamics of outsourcing. The Economist had a very good write up the other week about the rise of manufacturing in Mexico. Corporations are not moving production lines from overseas to the states out of the goodness of their hearts. It’s about money. Energy costs are one reason. The Atlantic pointed out that natural gas has lowered manufacturing costs in the US. The fuel costs shipping goods across the ocean are significant. The fewer miles goods have to travel the cheaper they will be. A second reason is the cost of labor. Wages have increased in China over the last couple of years so the savings that companies used to enjoy because workers weren’t really paid are gone. Finally another reason is control. A company has greater control of its products when the factors aren’t on the other side of the world. It just makes sense to move production back to the states.

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