Wednesday, May 25, 2011
High Fuel Prices Bring Jobs Back to North America
A Chinese based popsicle stick company has just moved from Dalain, China to Thunder Bay, Ontario, Canada, citing rising oil prices as the reason.
High prices on cargo ship fuel are making ocean freight more expensive, which will bring outsourced manufacturing jobs back to the Americas. So while it stings at the gas pump now, those high prices might lead to a revival of the American manufacturing economy.
As China's economy develops, the advantages of opening factories in China will shrink. Further, China's unbridled economic growth over the last decade has outpaced China's infrastructure, leaving some companies without the electricity they need to conduct business.
If politicians won't limit outsourcing and foreign imports, then it appears other economic forces will.