Natural Gas Driving Sharp Rise in American Competitiveness

American manufacturing competitiveness is on the rise, according to a study issued by the Boston Consulting Group and touted by the White House. Only seven of the 25 largest exporting countries in the world have lower manufacturing costs than the United States. The primary gain in U.S. advantage has come from access to cheap domestic supplies of natural gas. Wholesale prices for natural gas have dropped by over 50 percent since 2005 and are expected to decline for at least the next five years. The dropping prices create a significant cost advantage for U.S. manufacturers that have ripple effects through the entire manufacturing value chain. Other contributing factors to rising U.S. competitiveness include lower labor costs than other developed countries, rising domestic productivity, and rising labor costs in the developing world. Global companies are taking note of the systemic advantages that are driving the revival of American manufacturing and are making long-term investments in the U.S., according to the study. Read the study...