Manufacturing in the U.S. S starting to make a comeback, and is posed tor even b

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Manufacturing in the U.S. S starting to make a comeback, and is posed tor even bigger gains in the years ancad The number of factory jobs has started to nse atter plunging for decades, edging up by about 00,000 over the past 4 ycars to more than 12 million. 5ome US companices are bringing jobs back home, and toreign businesses are setting up shop. "The economics ot the world are changing in tavor ot U S manutacturing," says Boston Consulting Group Here are 4 proposals why this is sc 1: US Costs Are Geting More Compettive While wages soar at double-digit rates in China and some other emerging countries, they have stayed roughly level in the U.S in recent years, narrowing the gap between America and Asa Chine's overal manufacturing cost B vantage has shrunk o ust 4% when wages are adjusted or producti y and the costs of shipping and inventories are included t can be more economical to make some products in the han in As Further he surge in U n of oil and natural g pas, made possible by fracking, has pushed down costs 2 Companies Are ore Eager to Producs Near Their Customers. Companies are increasingly focused on reacting quickly to changes in demand, which is a lot easier when theyre making their products close to the customer. Manufacturing here can reduce the time needed to obtain gcods to days or weeks from the 2 months needed to ship goods across the Pacific and get them through customs. 3 The Political Climate for Menufecturing in the S Has improved Stete and local governments in the u.S now are competing fiercely for investments and offering some rich packages. The declining power of U.S. unions also encourages some manufacturers to set up here rather than Europe 4: Foreign Compa es e Bet ng on S le nu act Critical Thinking Questions 1 Manutacturing johs in the US are O A. reathing their highes levels in hislory. O C. now equal in number to those in China or elsewhere ng China emained the No. 1 destination for foreign direct investment in 2013, but its total ast year rose just 2% from 2012 o S258 2 bli The U attracted S 193.4 billion, up 16% to rank No.2 recovering from the recession D. continuing to plunge 2 More companies are reshonng" herause A. U S. wages are rnore compeutive lhan n lhe past. O B. it makes sense to produce closer to end customers. ° C. unions heve declined in power 0 D. All of the above

Explanation / Answer

1. B. recovering from the recession

The manufacturing sector experienced a fierce setback and plunged, now it is making a come back and that too very strongly which makes US the rank 2 manufacturer just after China and growing at a pace far better than China.

2. All of the above.

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