Manufactured exports are set to surge in the U.S. and the trend could add up to 5 million jobs by the end of the decade, according to new research from Boston Consulting Group.
Thanks to plummeting energy costs, especially from natural gas, and increasingly competitive wages, the U.S. will have an export cost advantage of 5 to 25 per cent over Italy, France, the U.K., Japan and even Germany, in a range of industries by around 2015.
Here’s what the productivity-adjusted wage chart comparison looks like:
Photo: Boston Consulting Group
By the end of the decade, the U.S. could capture 2 to 4 per cent of exports from major European countries and and 3 to 7 per cent from Japan by the end of the current decade.
That’s the equivalent of $90 billion in additional U.S. exports per year, according to BCG’s analysis.
“The export manufacturing sector has been the unsung hero of the U.S. economy for the past few years. But this is only the beginning,” said Harold L. Sirkin, a BCG senior partner and coauthor of the research. “The U.S. is becoming one of the lowest-cost producers of the developed world, and companies in Europe and Japan are taking notice.”
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