Industrial Insight

Manufacturing back with low energy costs… | May 31, 2013

May 31, 2013

Manufacturing Is Fueling America’s Recovery

By Charles Drevna

A little historical perspective, beginning in the 1970s: higher costs for raw materials and labor, among others, were significant factors that prompted many American manufacturers to move their operations overseas in order to remain globally competitive. But new supplies and availability of raw materials has shifted in our favor and manufacturers are looking at the United States once again. Today, due to the cost advantage of energy and raw materials, and manufacturing facilities and infrastructure already in place, many companies are beginning to move their operations back within our shores.

In Youngstown, Ohio, for instance, V&M Star is building a $650-million steel mill 34 years after the iron and steel industry left the region. Just last year, General Electric began building appliances previously made in China and Mexico in its long-deserted Appliance Park manufacturing plant in Louisville, Kentucky. Nucor Corp. is opening a new plant in Louisiana this summer. In Houston, Texas, the number of employees in the manufacturing industry has increased from 165,000 to 250,000 since 2009, as companies grow to keep up with the demand for parts needed in the hydraulic manufacturing process. These are just a few examples of the millions of dollars in planned investments as a result of the increased availability of natural gas and NGL.


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About author

I'm the executive vice president for a steel casting trade association, the Steel Founders' Society of America. I've got a crazy wife, five crazy children, three crazy people that married into the family, and two crazy fun little grandsons.







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