Manufacturing is returning to the U.S. in great numbers. An April 2014 study by Boston Consulting Group (BCG) found that the U.S. is currently ranked second only to China in manufacturing competitiveness.
And where is most of this manufacturing action occurring in the U.S.? Below the Mason-Dixon line. With low taxes, cheap electricity and a mostly nonunion workforce, the South is attracting quite a few businesses.
Michael Randle, publisher of Southern Business & Development (SB&D) magazine, says that in the first quarter of this year he tallied about $6 billion in Chinese manufacturing investments in the U.S., $4.3 billion of which were in the South.
“The South has become the cheapest place to make things inside the largest economy in the world,” said Randle.
However, Harry Moser, founder of the Reshoring Initiative, isn’t a fan of the giveaway culture that has emerged in the South.
“In some cases, it’s not doing the country any good,” Moser says. The Reshoring Initiative is an industry-led effort to bring manufacturing jobs back to the United States. The initiative works with U.S. manufacturers to help them recognize their profit potential as well as the critical role they play in strengthening the economy by utilizing local sourcing and production.
“We’ve been chasing these ghosts for years,” Randle says, “trying to attract these companies to start investing in the U.S. Finally it’s happening.”
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