Contemporary Energy Solutions

U.S. Manufacturing in the Wake of the Great Recession


When the economy began to recover in 2009, U.S. manufacturing tended to maintain a 12% share of the GDP during the following five years to 2013. The manufacturing sector is the U.S. was remarkable compared to other advanced countries, which had undergone similar declines/quick recoveries but rapidly slowed growth after 2011 (See figure 1).


A variation of economic influences that have occurred in recent years have made manufacturing in the U.S. more appealing, which has caused a few prominent U.S. corporations to transfer portions of their production functions back to the states. A few influences in this decision involve the substantial decrease in energy cost, the dollar’s weakening that has not improved until lately, the quick rise in labor efficiency, capricious international shipping costs, as well as a tightening gap between wages in China and the U.S. These promising circumstances have given rise to the optimistic view that global manufacturing will continue to relocate to the U.S. in coming years, in what many hope to be the revival of American manufacturing.


However, this renaissance that has been heavily anticipated by optimists cannot yet be considered a distinct reality, in spite of signs that American manufacturing’s rapid decline since 2000 has now leveled out, and there have been early signs of regrowth. If a manufacturing resurgence is to happen in the years to come, it will depend largely on how changes in a variety of operational factors can guide manufacturers’ sourcing choices and the speed in which they can regain their status in the global marketplace.


One operational factor to consider is the long-term benefit of updating buildings to fit more energy efficient standards.  Not only are these changes positively effecting the environment but can provide savings of $10,000s to $100,000s in energy costs.


For more information, please contact Contemporary Energy Solutions to receive your Free Energy Audit by clicking here or calling 800-893-2388.

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