STUDY: U.S. Manufacturing Remains Most Competitive Worldwide Despite Headwinds
NEW YORK — Although U.S. manufacturing is currently facing meaningful headwinds from a stronger dollar and the collapse in investment in the shale energy sector, it remains the most competitive worldwide, according to a new report release by Oxford Economics.
The rapid and broad-based 20 percent U.S. dollar appreciation since mid-2014 has done some significant damage to US manufacturing competitiveness. However, three factors have offset the hit from the stronger currency: the greenback was arguably the most competitive it has been before the surge, U.S. manufacturing productivity is the strongest in the world, and the U.S. is "gifted" with a stable regulatory framework, a flexible labor market, low energy costs and access to a large domestic market, writes Gregory Daco, head of U.S. economics, Oxford Economics, in a research note released today.