Manufacturing in the United States is catching up with China, at least from a cost standpoint, and the major reason is fracking, according to Fortune.
Citing a report from BCG, Fortune states that the cost to manufacture goods in the USA is only 5 percent higher than it is in China. BCG predicts that by 2018 manufacturing costs in the USA will be 2 to 3 percent cheaper than those found in China.
The USA’s standing as the world’s top hydraulic fracturing (fracking) nation has driven down energy costs by as much 30 to 50 percent compared to other major exporters.
What does it mean in the here and now? American companies are boosting productivity faster than their international competitors.
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