The "Re-Shoring" of American Manufacturing
I'm sure we all know the term "off-shoring". Many of us live in areas where manufacturers took their plants over seas (off-shored them) along with good paying jobs. Many of us know all to well the devastation of lives that came with it.
Well there is a new term "re-shoring", bringing manufacturing back to the U.S. Why ? Here are a couple of quotes form V.P. Joe Biden: (I know there are snickers out there because i used quotes from Mr. Biden but he happens to be correct about this)
" And now there's an energy boom (in the U.S.). There's an energy boom that's changed
the paradigm of manufacturing. It's cheaper to manufacture in the United States than it
is in Europe and/or Asia."
" This idea of re-shoring is something many people thought we would never see in the
United States. But , thanks to advances in hydraulic fracturing and horizontal drilling,
the abundant supplies of affordable energy they have unleashed, this is now a reality."
This re-shoring is also bringing well paying jobs back to our country. President Obama had this to say recently:
" Our manufacturing sector that use to be losing jobs , just hemorrhaging jobs, is now
adding jobs for the first time since the 1990s."
The plastics and chemical industries which depend on natural gas liquids for feedstocks expects that about 100 announced expansions in those industries could create over 500,000 permanent well paying jobs. These expansions also have the potential for about $71.7 billion dollars of investment in our country.
Fueled by affordable and abundant energy from shale development we should expect this manufacturing boom to continue and provide hard working Americans, once again, with well paying jobs for many years to come.
Shale development is good for the American economy and the American worker.
Views: 823
Replies to This Discussion
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Permalink Reply by gary smith on
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elect democrats and the boats will be loading up again.
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Permalink Reply by Mark McGrail on
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gary,
That's funny, but true.
People forget that the trade agreements that caused much of the "off-shoring" were signed during President Clinton's terms.
President Obama is presently in Asia attempting to put together another trade deal.
However, I'm not sure all Republicans are innocent.
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However, I'm not sure all Republicans are innocent.
Six of one and half-dozen of another. Hard to believe that neither party seems to understand that only the return of decent paying jobs and sound fiscal policy will drive this economy.
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Permalink Reply by Mark McGrail on
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Summer,
Sometimes it appears that the ruling elite in D.C. (repubs and dems) doesn't truly want the return of decent paying jobs. It appears they wish to create a permanent underclass dependent on them.
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Sometimes it appears that the ruling elite in D.C. (repubs and dems) doesn't truly want the return of decent paying jobs. It appears they wish to create a permanent underclass dependent on them.
That may indeed be a part of it but I also think there seems to be close to a complete disconnect between what happens along either coastline and the heartland. Companies pulled jobs overseas d/t cheaper labor and it seems they never understood that, at some point (and we may be fast approaching it), consumers can't continue to drive the economy because the financial wherewithall isn't there.
Cheney said debt didn't matter. He was wrong. The problem is that this is how the "prosperity" that we've known for the past 25 or 30 years has been fueled, no pun intended.
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Permalink Reply by Mark McGrail on
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Summer,
Could not agree more.
Hopefully shale development (done properly) brings back some of the lost prosperity to this portion of the country.
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repubs aren't innocent for sure. I guess what we need to do is ban trade with those who want to harm us. and imagine where this country would be right now if the shale boom hadn't happened. the dems would have been gone in 2012. ironic that Obama and the leftists are in the position of being able to exclaim the great benefits of the boom, and kill every other attempt in the united states to build pipelines and other fossil fuel attributes, just because of the private development of the shale.
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Permalink Reply by Jim Litwinowicz on
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Mark; There is huge potential for re-shoring jobs in the US and low energy is the key. But one will need patience as it takes a lot of time to build factories. The permitting process is complex and time consuming with many hurdles to clear.
Look at the proposed cracker plant in Monaca. The permits will take years to get. Highway, sewer, water, air quality, Army Corp of Engineers, DEP, EPA, DNR, local municipalities, state, federal, the list goes on and on and on. Our governmental system has established a lot of obstacles to development.
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Permalink Reply by Mark McGrail on
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Jim,
I agree. Although I am a true believer in the potential of Marcellus and Utica shale development, I am not one of the cheerleaders that believes this will occur overnight.
We just have to be patient.
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Permalink Reply by Mark McGrail on
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I have always believed that most if not all landowners within the Utica Shale play would eventually benefit from development of their oil and gas rights. So it has never been a question of if but when with me.The play is young and the companies are still in an exploratory/experimental stage. It will take them some time to "crack the code" in each area.
Plus the demand for natural gas should continue to rise as manufacturing returns to our country. As this demand rises it will create more incentive for companies to "step out" and "wild cat" thus expanding the areas of development.
That is why I do not believe landowners should jump at offers to sell their mineral rights right now (unless of course your financial circumstances dictate). The price per acre to sell your rights is depressed in some areas. But as exploration/experimenting turns to development, and as the demand for natural gas increases so too will the prices for mineral rights. But by the time those prices reach an acceptable level your property may be included in a drilling unit and you may not want to sell. That's a good thing.
You are sitting on something far more valuable than what people are willing to pay right now. So if you don't need to sell, then don't. Wait for the economic "boom" that is coming.Your patience will be rewarded.
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Permalink Reply by Mark McGrail on
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The "re-shoring" of manufacturing begins with shale development. The jobs will follow.
Right now more Americans are employed due to shale development than there were two years ago.
So many of the detractors of shale development ridicule the number of jobs created so far. All I know is that if I were one of the 5,700 now employed by the shale industry I am a happy camper. I can now afford to pay my bills which helps local economies.
Let the naysayers bellow and bray; little by little the tidal wave of economic development, and jobs is building. They will be made the fools in the end.
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Permalink Reply by Appalachian on
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Keep the gas here and the factories will build. Australia is currently finding out what can happen when you export gas aggressively. Let's just enough export to keep the drilling sustainable here in the US. Manufacturing needs cheap energy, which we have...for now. Australia is currently pulling more gas out of the ground than ever, but due to exportation their domestic natural gas costs are nearing the point of manufacturers laying off workers. There is a big rush to export our "cheap" gas to countries paying 5x what we do as consumers. Looks good on paper until the exports start to get priority over domestic usage due to increased profits from overseas sales. Let's not shoot ourselves in the foot.
Keep it here. Export Products, not Energy.
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