Since the recession hit the country, most, if not all businesses suffered. With nearly 2.3 million workers, it’s inarguable that the manufacturing industry suffered tremendously. But trends are changing and the U.S. manufacturing industry is finally being struck by good news.
According to the National Association of Manufacturers (NAM), the production of goods overseas will be coming to an end. With the change in technology and globalization, this is a new beginning for the U.S. manufacturing industry (In fact, the manufacturing sector has been expanding for the past consecutive months). So, what and who is responsible for this resurgence?
Four Reasons Why the U.S. Manufacturing Industry Will See Growth
Reason #1: Increasing labor costs overseas
In recent years, many businesses have looked to China for the production of goods. However, labor costs are rising (22% in 2013 alone, and a 60% increase since 2009).
Reason #2: Rising transportation costs overseas
This includes an increase in volatile fuel costs and East-West shipping costs.
Reason #3: Rising labor productivity in the U.S.
Recent reports indicate a 36 percent growth in labor productivity in the U.S. And according to the U.S. Department of Labor, productivity will continue to grow.
Reason #4: Increase in energy competition
This increase in energy competitive is due to the discovery of new domestic sources of shale oil in the country and increase popularity of alternative energy sources.
When it comes to New Jersey Manufacturing Insurance, that’s our specialty!
At Vreeland Insurance, our agents are trained specialists in New Jersey manufacturing insurance. We have the expertise and years of experience to understand your needs, designing a program that enables you to get the most for your insurance dollar. Call us today (877) 755-3767
Additional Source: Property Casualty 360