Simon Nixon

Reshoring: how jobs came flooding back to America

Cheap fuel is bringing jobs back from China to America’s former economic graveyards

issue 16 February 2013

It is 20 years since the US presidential candidate Ross Perot railed against globalisation, warning of a ‘giant sucking sound’ as millions of jobs left America and went to foreign factories. The presidential hopeful warned that a new economic curse — offshoring — would shut steel mills and factories without government protection. But listen closely and a different sucking sound can now be heard: jobs coming back to America.

A country once panicked about ‘offshoring’ has a new buzzword: ‘re-shoring’. The US recovery is weak and unemployment remains high. But quietly, manufacturing has been making a strong recovery, adding 500,000 jobs since the end of the recession. America, influential analysts believe, is on the verge of a manufacturing renaissance.

The ability to extract gas from shale rocks, by hydraulic fracturing, has helped gas prices collapse to about 20 per cent of the equivalent price of oil, according to HSBC.

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