Manufactured exports—a bright spot of the U.S. economy in recent years—are set to surge. Combined with jobs created as a result of reshoring, higher U.S. exports could add 2.5 million to 5 million jobs by 2020, as manufacturers shift production from leading European countries and Japan to take advantage of substantially lower costs in the U.S., according to recent research from The Boston Consulting Group.
BCG projects that by around 2015, the U.S. will have an export cost advantage of 5 to 25 percent over Germany, Italy, France, the U.K., and Japan. As a result, the U.S. could capture 2 to 4 percent of exports from Europe and 3 to 7 percent from Japan by the end of the current decade.
This would translate into as much as $90 billion in additional U.S. exports per year, according to BCG’s analysis.