An oil derrick rises up in Erie City Park where maintenance is being done to the well on the site.Steve Nehf—Denver Post via Getty Images
“Made in the U.S.A” is becoming more affordable. The reason? Fracking.
You don’t need to a Nobel Prize in economics to know that the fracking revolution has been good for the U.S. What’s not so well known is just how competitive cheap oil and gas has made American manufacturing. BCG, the Boston consultancy, estimates the average cost to manufacture goods in the U.S. is now only 5% higher than in China and is actually 10% to 20% lower than in major European economies. Even more striking: BCG projects that by 2018 it will be 2% to 3% cheaper to make stuff here than in China.
