OIl high. Transport high. Jobs back to US and Mexico.
U.S. Factories Bring Jobs Home as Shipping Costs Bite, WSJ Says
By David Altaner
June 13 (Bloomberg) -- Some U.S. manufacturers are bringing production and jobs back to Mexico or the U.S. from Asia as shipping costs grow, the Wall Street Journal said.
The trend, linked to rising oil prices, could slow the movement to outsource production to China or other low-cost countries, and reduce the amount of factory job losses in the U.S., the newspaper said.
The costs of shipping a 40-foot container from Asia to the U.S. East Coast has tripled since 2000, and could double again as oil prices rise, the Journal said, citing Jeff Rubin, chief economist at Toronto-based CIBC World Markets.
Changes will be limited because domestic shipments by train or truck face surcharges, and systems are already clogged, the newspaper said. Also, many of the suppliers who produce parts or who repair machines have declined or vanished, the Journal said.
To contact the reporter on this story: David Altaner in London at daltaner@bloomberg.net |
