Growth in Exports and Near Sourcing Could Create 5 Million U.S. Jobs

Although hardly talked about, the U.S. has been gradually shifting efforts towards the expansion of U.S. trade exports and the increase of home production in an effort to revive the economy and bring manufacturing jobs back to the U.S. Analysts predict that with new policies set in place, the growth in exports and U.S. production could bring up to 5 million jobs and 130 million dollars in additional annual exports by 2020. According to co-authors of the study, “the U.S. is becoming one of the lowest-cost producers of the developed world, and companies in Europe and Japan are taking notice.”According to the report, the U.S. will have a cost advantage of between 5 to 25 percent compared to our trading partners in Europe and Japan. By 2015, U.S. manufacturing costs will be 8 percent lower than the U.K., 15 percent lower than Germany and France, 21 percent lower than Japan, and 23 percent lower than Italy. And while Chinese manufacturing will be on average 7 percent cheaper than in the U.S., these savings are at a negligible when factoring in the savings on transportation, duties and other costs when trading with the U.S. These shifts in trade can be attributed to the U.S. natural gas prices, which are expected to remain 50 to 70 percent cheaper in comparison to Europe and Japan, bringing down transportation's costs and making the U.S. more competitive in the world trade market.