Yes, Virginia, There Is a U.S. Manufacturing Boom

By Harold L. Sirkin

A recent opinion piece in the New York Times brings to mind one of the most frequently quoted lines ever to appear in a newspaper editorial: “Yes, Virginia, there is a Santa Claus.”

The editorial, which appeared in the New York Sun in 1897, was written in response to a letter to the editor from eight-year-old Virginia O’Hanlon, daughter of New York City coroner’s assistant Philip O’Hanlon.

The letter was brief: “Dear Editor, I am eight years old. Some of my little friends say there is no Santa Claus. Papa says, ‘If you see it in The Sun it’s so.’ Please tell me the truth; is there a Santa Claus?”

One of the Sun’s editors, Francis Pharcellus Church, a war correspondent during the Civil War, responded, telling Virginia that her friends were “affected by the skepticism of a skeptical age”—and were wrong.

“Yes, Virginia, there is a Santa Claus,” Church wrote, “… he exists as certainly as love and generosity and devotion.”

Today, Virginia’s great-great-grandchildren, and those of her little friends, probably read the Times, which many consider today’s newspaper of record. Some of these readers may be graduates of Hunter College, Columbia University, or Fordham University, where Virginia—who would become a New York school teacher—later received her bachelor’s degree, master’s, and Ph.D.

Like many other college graduates, they may be wondering where the jobs are. And they may be wondering if what they read recently in the Times regarding America’s reported manufacturing renaissance is correct: that it’s largely a myth, like old Saint Nick.

While I’m no Francis Church, let me assure Times readers and everybody else that such accounts extolling “the return of manufacturing jobs to the U.S.” are not a myth.

The rebound is very real, and and it will likely gain even more momentum as companies worldwide come to realize the cost advantage U.S. manufacturing has gained from cheap domestic energy, most notably natural gas.

This is not to say that there will be tens of millions of new high-paying manufacturing jobs. But my colleagues and I predict that by 2020, we could see up to 1.5 million manufacturing jobs and as many as 3.5 million additional jobs created because of the new factories that are being built. Five million new jobs are not just a trickle as the Times article suggests.

For evidence, consider the recent Honda Motor (HMC) announcement that it manufactured a record 1.3 million vehicles in the U.S. last year—with nearly 10 percent of the total (some 109,000 vehicles) exported to other countries.

Twenty-five years ago, Honda didn’t make any cars in the U.S. Now it has four U.S. plants. The company created some 2,040 new U.S. manufacturing jobs in the past two years alone. And the company’s total U.S. payroll exceeds $1.2 billion. That is no myth.

Yes, Virginia, there is a U.S. manufacturing boom under way. And Honda isn’t the only company—foreign or domestic—fueling the resurgence.

The natural gas boom alone has prompted numerous international companies, including Taiwan’s Formosa Plastics (1301:TT), Canada’s Methanex (MEOH), France’s Vallourec, and Germany’s Siemens (SI) (which makes gas turbines that generate electricity from natural gas), to invest billions in new U.S. plant capacity.

U.S.-based chemical companies, such as Westlake (WLK) and Dow (DOW), and steel companies, including Nucor (NUE) and JMC, are also building up their stateside presence to take advantage of our natural gas industry.

This also is not a myth. Nor are the jobs that are being created.

For Virginia’s descendants, I offer the following encouragement: Hang in there; the rebound is about to take a big bounce.

Hal_sirkin
Harold L. Sirkin is a Chicago-based senior partner of The Boston Consulting Group (BCG), a professor at Northwestern University’s Kellogg School of Management, and co-author, most recently, of The U.S. Manufacturing Renaissance: How Shifting Global Economics Are Creating an American Comeback (Knowledge@Wharton, November 2012).

 

To read the rest of this article, visit Bloomberg.
Most Recent

Thermal Spray Decoded Part 3 of 3

By TJ Berridge
October 28, 2016 Category: Thermal Spray, HVOF, Plasma Spray, Spray And Fuse

THERMAL SPR AY DECODED What you need to know about the process and the companies that do it for you. 7 How important is base material 8 What can the right thermal spray company do for your parts, your business, and your bottom line? How important is base material? The integrity of the base material is critical to how a component is manufactured and ultimately performs. For this reason, it is absolutely necessary that you ask a provider where their base materials are sourced from. Base materials from China and Russia (for instance) have been known to be inferior in quality. Seek out manufacturing partners that source their raw materials from North America and Europe. If you have any hesitation about whether or not your manufacturer is telling the truth about where their raw materials come from, ask to see the documentation. Ultimately a good partner knows that your name is on the line too, so theyll do what they can to give you assurances of the quality you can expect. Using inferior

Thermal Spray Decoded Part 2 of 3

By Plasma Tec
October 04, 2016 Category: Thermal Spray, Plasma Spray, Hvof Spray

THERMAL SPRAY DECODED What you need to know about the process and the companies that do it for you. 4 Can any part or material be thermal sprayed? 5 Whats the difference between a non-thermal spray part and a thermal spray part? 6 Is one thermal spray source as good as the next? Can any part or material be thermal sprayed? In short, any material that can be melted can be sprayed by thermal spraying. Depending on the variation of thermal spray, material can be heated in a gun up to as hot as 14,000 C. However, the benefit of plasma HVOF spraying is that these high temperatures stay inside the gun, transferring very little heat to the substrate itself. Substrate temperature rarely exceeds 300o C so coatings can be applied with little to no pre- or post-heat treatment while component distortion is minimal. With plasma and HVOF spraying, coatings can be applied to thermal sensitive substrates like low melting point metals and plastics. What is the difference between a thermal

Thermal Spray Decoded Part 1 of 3

By Plasma-Tec
September 12, 2016 Category: Thermal Spray, HVOF, Flame Spray, Twin Wire Are, Plasma Spray

THERMAL SPR AY DECODED What you need to know about the process and the companies that do it for you. 1 What is thermal spray? 2 What are the main processes? 3 What does it do and when should thermal spray be used? Stronger, tougher, and an extraordinary ability to tolerate extreme environments it almost sounds like the description of a super hero. Of course you know what were talking about are the effects of thermal sprayed coatings. Through an intense process, thermal spray makes an already strong and carefully manufactured part even better. When parts are stronger, tougher, and more abrasion corrosion resistant, they become more effective, longer-lasting, and suitable for tasks they would otherwise not be capable of.This paper will provide you with a high level review of thermal spray processes and applications. By reading this paper you will gain a greater understanding - and appreciation - of thermal sprayed components along with the companies that perform this process well. What

Categories
Oil (157)
Shale (70)
Policy (49)
Economy (35)
Fracking (34)
Manufacturing (28)
Gas (27)
Crude (26)
Drilling (19)
Pumps (14)
RigCount (13)
OilPrices (13)
OilPrice (11)
Wells (11)
Energy (11)
OPEC (11)
Exports (10)
Jobs (10)
OilGas (9)
US (9)
Water (8)
NaturalGas (7)
KeystoneXL (7)
OilProduction (7)
Production (6)
Leadership (5)
Brent (5)
Ohio (4)
MergersandAcquisitions (4)
Hockey (4)
Keystone (4)
NHL (4)
(4)
Plasma Spray (4)
Technology (4)
Thermal Spray (4)
Acquisitions (3)
U.S. (3)
OilSupply (3)
Michigan (3)
RigCounts (3)
Canada (3)
Europe (3)
Legislation (3)
RedWings (3)
ShaleGas (3)
Rigs (3)
Finance (3)
CrudeOil (3)
U.S.Energy (3)
Mexico (3)
Election (3)
OffshoreDrilling (2)
Talent (2)
Labor (2)
Exploration (2)
Exxon (2)
HVOF (2)
Companies (2)
BakerHughes (2)
WaterReuse (2)
Robots (2)
Politics (2)
GovernmentRegulation (2)
Growth (2)
NorthDakota (2)
Imports (2)
Refracking (2)
America (2)
WaterTreatment (2)
ShaleOil (2)
Onshore (2)
Millenials (2)
ConsumerSpending (1)
Market (1)
ShaleDrilling (1)
Arctic (1)
WellCompletion (1)
SocialSecurity (1)
Government (1)
CrudePrices (1)
WellDesign (1)
DrillingTechniques (1)
Teamwork (1)
USA (1)
OilSands (1)
OilShale (1)
OilFutures (1)
Forecasts (1)
Output (1)
Costs (1)
ChrisKyle (1)
Petroleum (1)
CorporateCitizenship (1)
WaterPumps (1)
WaterPump (1)
Pipeline (1)
CorporateSocialResponsibility (1)
Conservation (1)
DepartmentoftheInterior (1)
Crudeoil (1)
JobCreation (1)
Oil Production (1)
Manufacturing Jobs (1)
OilRigs (1)
Coal (1)
PowerGeneration (1)
Schlumberger (1)
Oil Export Ban (1)
Oil Prices (1)
Oil Ban (1)
Greenhouse Gases (1)
OIlSurplus (1)
Energy Production (1)
Oil Pro News (1)
Crude Oil (1)
Law (1)
CNC Machining (1)
Pump Plungers (1)
Flame Spray (1)
Twin Wire Are (1)
Hvof Spray (1)
General (1)
ShaleWeathering (1)
Workers (1)
OilExports (1)
Unions (1)
OilDemand (1)
ShaleSupply (1)
OilRig (1)
EnergyProduction (1)
EnergySecurity (1)
SupplyChain (1)
CrudeExports (1)
Producers (1)
ShaleWell (1)
ExportBan (1)
CrudeExportBan (1)
IHSdeals (1)
Oilcrash (1)
Crudecrash (1)
HigherEducation (1)
OilPatch (1)
Trends (1)
Refracturing (1)
Egypt (1)
Coatings (1)
WallStreet (1)
India (1)
GDP (1)
Demand (1)
AlternativeEnergy (1)
Land (1)
Pittsburgh (1)
Airports (1)
Recycling (1)
Reports (1)
Railroad (1)
Sustainability (1)
BHI (1)
Nebraska (1)
SouthDakota (1)
PressurePumping (1)
ArtificialLift (1)
Regulations (1)
Transportation (1)
Russia (1)
AlternativeEngergy (1)
Reserves (1)
ThermalSpray (1)
EuropeanEnergy (1)
Environment (1)
App (1)
Engineers (1)
Reservior (1)
OilfieldEconomics (1)
Reservoir (1)
Africa (1)
OilField (1)
DeepWaterFracking (1)
Investors (1)
Plays (1)
Import (1)
Duties (1)
Ethane (1)
Facilities (1)
DrillingRigs (1)
EconomicGrowth (1)
Utica (1)
Hiring (1)
Investments (1)
WTI (1)
GlobalEconomy (1)
OilCompanies (1)
CorporateCulture (1)
CompanyInformation (1)
Machining (1)
Stocks (1)
PumpTypes (1)
Spending (1)
MiddleEast (1)
Supply (1)
Plasma Tec (1)
PowerPlants (1)
WaterGeneration (1)
WaterSources (1)
Oklahoma (1)
Basketball (1)
SouthKorea (1)
Farming (1)
Future (1)
StockMarket (1)
FederalReserve (1)
Offshore (1)
OilandGas (1)
STEM (1)
Investing (1)
Students (1)
GE (1)
CoatingProcesses (1)
PennState (1)
Buildings (1)
Research (1)
Development (1)
World (1)
BestPractices (1)
Reshoring (1)
Halliburton (1)
Spray And Fuse (1)
+ Show More