For decades, U.S. manufacturing has been declining, basically due to low foreign labor costs, taxes, and higher domestic energy costs. Now our new president, Donald Trump, has made it clear he intends to take action to help our manufacturing companies reverse this trend.
There is also something resembling a “perfect storm” coming to assist American companies in manufacturing, which will make President Trump’s goals easier to achieve.
Decreasing U.S Manufacturing Costs. First, the evolution of our automation technologies, including the Humphrey Valve and other pneumatic control devices offered by Diffley-Wright Corporation, is reducing the cost of making products domestically. Not even cheap foreign labor can compete with our newest “robots”.
Lower Energy Costs. Next, the prices of energy, primarily oil and gas, have fallen to nearly 1/3 their highest level of 2008; from $142 to $54/barrel. This appears to be a stable trend for the foreseeable future, with domestic oil/gas production at an all-time high and massive new discoveries.
Higher Foreign Labor Costs. Finally, Chinese and other foreign factory wages have been steadily rising with China catching up to the US minimum wage level in 2017.
Add to these trends a U.S. president that is determined to expand our industrial sector, and perhaps we should prepare ourselves for an impressive recovery of American manufacturing dominance in the world. Are you ready?