The remarkable turbo-charged 2011 economic comeback of U.S. manufacturing is comprised of a perfect storm of positive components:
* Lots of demand in the broad industrial market - utilities, refineries, oil, natural gas, plant expansion and production> Also, increased demand for rental space particularly in the large metropolitan areas has rekindled the high rises.
* An unexpected export surge with a major boom in Southeast Asia - especially China and India. With almost 35% of the world's population, these 2 countries are using trillions of surplus cash to upgrade their living standards. Both American agricultural and consumer products are benefiting.
* A lessening of the margins between overseas manufacturing costs and transportation. By 2015 China's labor cost increases are estimated to add on 20% per annum, while U.S. labor costs will increase no more than 3% annually.
*Increase in inventories. During the Great Recession, many companies used 'just in time' inventories. Now manufacturers and distributors are stocking up.
* International companies like Caterpillar, NCR, General Motors, and others have returned some of their overseas facilities to the U.S. and plan further U.S. expansion.
LORI BOWERS
http://www.desertareahousingmarket.com
The Lori Bowers Group
A boutique Real Estate Office, with a full service team to serve all your Real Estate Needs
La Quinta, Palm Desert, Indio, Rancho Mirage, Coachella , Indian Wells and the surrounding Palm Springs Area.
78065 Main St., Suite 107
Old Town La Quinta
La Quinta, CA 92253
Phone: (760)777-8788 • Fax: (760)771-5355
