Tags: manufacturing

United States a Cheap Manufacturing Haven

Wednesday, 10 Sep 2008 11:39 AM

The latest cheap manufacturing haven for European companies isn't China or Eastern Europe. It's the United States, say top executives of some of the country's largest companies.

The reason isn't the still relatively cheap dollar, it's the increasing size of financial incentives that are drawing foreign manufacturers stateside.

"With the amount of money U.S. states are willing to throw at you, you would be stupid to turn them down at the moment," a senior executive at Fiat told the Financial Times.

"It is one of the low-cost locations to be in at the moment."

Tennessee recently agreed to give Volkswagen $557 million worth of incentives for the German carmaker's $1 billion plant in Chattanooga; Alabama is providing German industrial group ThyssenKrup with more than $811 million to build a new steel mill there.

European executives also point to the United States' competitive advantage over European Union countries, where state aid rules make support for factories difficult.

"States are willing to pay for new roads, re-train workers, and offer huge tax breaks. That is a competitive package that not many parts of the world can match when you look at how productive U.S. workers are and where the dollar is," the chairman of a large Swiss group says.

In addition, manufacturers who once considered China attractive are now rethinking their options because the rising yen and weaker dollar make outsourcing to China more expensive.

CNN reports that manufacturing in China is rapidly becoming more costly.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
StreetTalk
The latest cheap manufacturing haven for European companies isn't China or Eastern Europe. It's the United States, say top executives of some of the country's largest companies.The reason isn't the still relatively cheap dollar, it's the increasing size of financial...
manufacturing
244
2008-39-10
Wednesday, 10 Sep 2008 11:39 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved