What Is Fueling the Made in America Movement?

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Feb. 13 (Bloomberg) –- Boston Consulting Group Senior Partner Hal Sirkin discusses natural gas, manufacturing and labor fluidity. He speaks with Stephanie Ruhle on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

America movement?

We see wages changing.

Natural gas is quintessentially american.

We have been able to develop a low-cost energy source, 40% of the world price.

Where fracking is allowed.

Do you think this competitiveness will change the way some of the states are looking at fracking?

When new york looks at pennsylvania and says, [indiscernible] is new york going to get on board?

The question is which states will allow and which ones will not trade the states that allow it will have to deal with the environmental issues that will come up.

At the same time they will be able to get a lot of tax revenue and create jobs in their states.

Could the minimum wage increase make jobs move back overseas?

It could.

The jobs at the minimum wage level are service jobs.

If there is anything, it will be tiny.

What's the next drive to this made in america?

Higher prices overseas or lower here?

Both.

We see companies in japan and in europe looking at manufacturing in the u.s. because it's cheaper to make it in the u.s. than in their home countries and that will create more jobs here.

In china, we see wages continuing to rise.

These are pretty dramatic changes that make the u.s. extremely competitive.

Who's going to be affected?

Automotive parts and automotive industries will be affected during we will see anything that relates to ethylene and natural gas.

We see furniture, we see rubber products.

We see all sorts of products.

Basically two thirds of all we import from china is potentially able to come back.

Do you think it will?

And probably will take over the next five years.

In 2011 we projected this would start in 2015. in 2012 we realized it already started.

We think by 2020 there will be a big impact in the u.s. economy.

What country still remain more expensive than the u.s.? if you look at most of continental europe, that's the case.

France and germany are 17% higher than the u.s.. japan is 10% higher than the u.s., and the u.k. eight percent higher.

Can they change their plans?

It is hard.

The labor structure in the u.s. is so different than in europe during if you work in northern europe, you have lots of work councils and they are focused on keeping existing jobs rather than having labor solidity.

It is u.s. labor solidity that allows us to do this so effectively.

As investors are looking at 2014, are there specific businesses they want to have an eye on?

This text has been automatically generated. It may not be 100% accurate.

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