At IMT, or Industry Market Trends, the Industrial News Room at ThomasNet News, David Sims delves into a discussion on the emerging possibility that foreign companies are starting to view America as an attractive alternative for manufacturing. Not only are U.S. companies reshoring as they realize the benefits of moving operations back home, but foreign businesses are finding value as well. This is largely due to the lower energy costs resulting from the increase in shale gas production.
Sath Rao, Vice President of Industrial Automation and Process Control at Frost & Sullivan told IMT that “Shale gas has become a game-changer for the U.S. manufacturing renaissance.” This is not only true for the energy-intensive industries like steel and chemicals, but also high-tech industries. Both Apple and GE have reshored some production.
With natural gas prices now a quarter of what they are in Europe, it is fueling a manufacturing boom in the U.S. Just in chemical manufacturing alone, companies are planning to invest $95 billion in building plants in the U.S.
Last April, BASF, a German chemicals manufacturer announced plans to expand in the U.S. “The Washington Post noted that since 2009, ‘BASF has channeled more than $5.7 billion into new investments in North America, including a formic acid plant under construction in Louisiana.’”
Read more at ThomasNet Industrial News Room, IMT.