CHICAGO-The United States, which is becoming one of the lowest-cost manufacturers in the developed world, is due for a surge in exports of manufactured goods over the next several years, according to a report from Boston Consulting Group (BCG).
Titled “Why America’s Export Surge is Just Beginning,” the study predicted that by 2015, the United States will have an export cost advantage of from 5 to 25 percent over Germany, Italy, France, the United Kingdom and Japan in a range of industries. Among the key drivers are lowering costs for labor, natural gas and electricity.
As a result of these advantages, U.S. manufacturers could capture from 2 to 4 percent of exports from the four European countries and from 3 to 7 percent of exports from Japan by the end of this decade. This would translate into as much as $90 billion a year in additional exports. BCG added that, when the increase of exports to the rest of the world is included, annual gains could reach $130 billion.
BCG said manufactured exports have been a “bright spot” in the U.S. economy in recent years, and have led to “reshoring,” in which manufacturers have been moving their production back to the United States. BCG said this trend is still in its early stages, but noted that manufacturers such as Toyota, Honda, Nissan, Siemens and Rolls-Royce have announced plans to export products from their U.S. factories to locales throughout the world. Higher exports could lead to the creation of from 2.5 million to 5 million U.S. jobs by the end of the decade, BCG said.
The BCG report is part of the consulting firm’s series, “Made in America, Again,” which chronicles changes in global economics that are beginning to favor manufacturing in the United States.