It's very significant, because the parent claimed US manufacturing had been hollowed out. That hasn't actually occurred.
The Fed's measurement of real manufacturing output is 70% higher than it was 30 years ago (the population is merely 1/3 larger).
Further, manufacturing is booming in the US. [1] In China it has been barely expanding for years, and that's despite China supporting their manufacturing base with vast state subsidies that have generated extreme over-production in things like steel.
The US has a perpetual cheap energy advantage over most of the rest of the world that is helping to spur that manufacturing boom. Natural gas prices are typically half that of the rest of the developed world or lower, as are electricity prices (US electricity costs are something like 35% that of Germany). Then throw on top the substantial corporate income tax cuts that will bolster manufacturing income margins.
The US outlook for manufacturing is brighter than it is for all other major economies. [2]
The Fed's measurement of real manufacturing output is 70% higher than it was 30 years ago (the population is merely 1/3 larger).
Further, manufacturing is booming in the US. [1] In China it has been barely expanding for years, and that's despite China supporting their manufacturing base with vast state subsidies that have generated extreme over-production in things like steel.
The US has a perpetual cheap energy advantage over most of the rest of the world that is helping to spur that manufacturing boom. Natural gas prices are typically half that of the rest of the developed world or lower, as are electricity prices (US electricity costs are something like 35% that of Germany). Then throw on top the substantial corporate income tax cuts that will bolster manufacturing income margins.
The US outlook for manufacturing is brighter than it is for all other major economies. [2]
[1] https://www.marketwatch.com/story/ism-manufacturing-gauge-hi...
[2] http://fortune.com/2016/03/31/united-states-manufacturing-ch...