(Reuters) - Martin Koffel, head of engineering company URS Corp , feels the United States is poised for a manufacturing renaissance, driven at least in part by demand among the developing world's burgeoning consumer class.
(Reuters) - Martin Koffel, head of engineering company URS Corp , feels the United States is poised for a manufacturing renaissance, driven at least in part by demand among the developing world's burgeoning consumer class. "There is once again a cachet about American-made products," the CEO said in an interview on Tuesday. "In some industries at some levels, there's going to be a Made in America advantage. ...
Martin Koffel, head of engineering company URS Corp , feels the United States is poised for a manufacturing renaissance, driven at least in part by demand among the developing world's burgeoning consumer ...
There are two big emerging economic stories coming out of the U.S. There's the American energy boom, which will be driven by drillers tapping American shale. And there's the American manufacturing renaissance, which is supposed to be driven by rising overseas labor costs and falling domestic energy costs (thanks to the energy boom). But so far, there's little evidence to suggest the manufacturing renaissance is underway.
AMERICAN manufacturing receives a lot of verbal abuse, but it has actually held up very well over the past few decades. Some sub-industries, like textile manufacturing, have been gutted. Others, like manufacturing of large-scale transportation equipment, have hung in there despite ups and downs, and still others, like advanced electronics manufacturing, look as strong as ever. What has really faced steady decline over the past half-century is manfacturing as a mass employers of medium- and low-skill workers.
Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.The article below is a guest contribution by Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors.
“The first generation of Silicon Valley giants got their start in a garage,” Anderson writes in Makers, “but they took decades to get big. Now companies start in dorm rooms and get big before their founders can graduate.”
That’s impressive progress… but it all takes place in the realm of “bits.” Social media, music, videos — it’s all digital.
One of the big emerging economic stories in the world today is the American manufacturing renaissance. This is the idea that low energy prices, increasing productivity, and rising costs overseas would invigorate the production of goods in the U.S.
OVER at Ezra Klein's blog, Karl Smith has been doing some very interesting blogging on the compositional effects of the recession in America. He concludes a post documenting the dramatic decline in manufacturing employment over the past decade by writing:
Maarten Spek submits: The upswing in resource prices continues. From a fundamental perspective this is no surprise. As the US, Japan, and Europe pursue an unremittingly loose monetary policy, credit supply to the “real” economy is more or less stagnant. Therefore a lot of capital is available for speculation. In addition, growth rates (and the anticipated returns) in the emerging economic nations outpace those in the West, whereas the former consume relatively high quantities of commodities.