With the increase in shale mining the U.S is seeing an increase in manufacturing. Shale mining itself is providing an increase in manufacturing through the need of pipelines and machinery for extraction. Cheap fuel has allowed for cost reductions for manufacturing industries and to better compete with the foreign imports. American manufacturing industries has seen a 17% increase and a 9.7% employment increase from 2011-2012. The shale gas is credited for the lower production costs for feedstock and building materials. U.S is gaining a competitive advantage because of the cheaper energy and will gain more foreign buys for U.S products and help improve the trade balance. Employment is expected to increase 1% annually through 2020 in energy intensive manufacturing according to the IHS Global insight, while having three quarters of those jobs created in the United States.
I think this is a wonderful news to all the American's people. As manufacturing continues to increase more demand for labor will increase causing the unemployment rate to decrease. I also think that demand for capital will increase resulting in an overall increase in output and a decrease in our country trade deficit.
ReplyDeleteThis seems like a great movement. Just wondering, how does shale compare to say coal or oil? How is the mining for the environment?
ReplyDeleteThe issue with mining shale is the risk of contaminating our fresh water aquifers. Although the demand is high right now it is important to weigh all possible future costs as well.
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