Running head: LOW PRODUCTION COSTS INCREASE U.S. MANUFACTURING
Low Production Costs Increase U.S. Manufacturing
LOW PRODUCTION COSTS INCREASE U.S. MANUFACTURING
The topic how the low production cost has increased the U.S. manufacturing explains the
reshoring activity of industrial jobs that were formerly lost to nations like Mexico and China. Many
manufacturing firms that were based in China have relocated to America due to factors such as
increased labor cost overseas, low energy costs in the U.S. and higher freight cost of shipping
products from foreign countries to America. Also, the federal and state governments are providing
incentives for manufacturers to relocate to the country, a move that is aimed at increasing the
number of jobs in America. The topic in the video is important to every American citizen and me
because, between 2000 and 2009, approximately six million jobs were lost due to offshoring, i.e.
manufacturers relocating to overseas locations ("Why some manufacturers are returning to the
U.S.", 2017). Offshoring resulted in massive job losses, and as a result, the rate of unemployment
went high, thereby lowering the standards of living and aff...