Are Higher Gas Prices Better for Manufacturing?

Higher fuel prices are better for domestic manufacturing because they remove some of the cost incentives for shipping production overseas. In a supreme bit of irony, the U.S. government's failure to take meaningful action about high fuel prices may help to undo another of its failed policies - shipping as much manufacturing as possible overseas.

"Higher fuel prices are better for domestic manufacturing"

Good answer but the average Joe will say your crazy because most technical types don't understand the real (behind closed doors / off the record) way corporate America operates.The powers to be will not spend money on process improvement or replacing equipment vs rigging it up when they're making the profit they want even if you forewarn them of things to come. They have to feel the pain through reduced profit margins before they will make a move because they all have the get rich quick mentality and approach because of their training.

Oh and by the way they're blaming you in the meetings.

Cheers!

No.

I really think the US car industry remained committed to gas-guzzlers far too long.

Even still, the US automakers are making cars and pickup trucks with engines more than twice the cc rating needed.

This means that gas pricing will hit the US carmakers harder than the Japanese import cars, vans, utes and 4WD's.

Kind Regards....