Publication

After a prolonged slump, the US manufacturing sector is showing notable signs of revival. In part, the upturn in manufacturing output is cyclical, as global economic growth recovers following the downturn in 2008-09. At the same time, however, there are indications that other forces may be at work, as a variety of factors – higher labor costs in the emerging economies of Asia, higher freight transportation costs, increased concern about supply-chain disruptions – increase the relative attractiveness of the United States as a location for factory production.