The National Association of Manufacturers recently released a report stating that shale gas production will create enormous benefits for the US economy. The NAM report also indicates that the manufacturing industry is set to grow steadily as a result of all the activity. Shale gas production will create thousands of jobs and help the United States regain its foothold as a center for manufacturing.
The US economy took a big hit when manufacturers started moving their facilities overseas. One of the reasons manufacturers moved out of the United States is because energy supplies were so expensive. Some US companies also started investing in foreign energy companies, taking money out of the US economy and sending it elsewhere. Shale gas production will make energy more affordable for manufacturers nationwide, so it makes financial sense for existing companies to move their production activities back to the United States. New manufacturing companies will also find it more affordable to establish domestic operations.
Ohio is just one of the states experiencing a surge in manufacturing activity due to shale gas production. In 2012, Vallourec Star opened a steel pipe mill in Trumbull County, creating 350 jobs. Mill workers produce the pipe used in natural gas well casings. Vallourec Star's sister company, VAM USA, is currently completing a finishing plant in Trumbull County. When it opens, the plant will have approximately 100 more full-time jobs available. Steel companies are not the only ones benefiting from the shale gas boom. Legacy Measurement Solutions, manufacturer of equipment for gas measurement and processing, will be moving into a Brookfield manufacturing facility, creating 150 jobs for local workers. Dearing Compressor and Pump had forty-five employees in 2004, but due the growth of the natural gas industry, the company now employs more than 180 people.
Shale is such a boon for the manufacturing industry that several universities, consumer organizations, and industries recently launched the American Shale & Manufacturing Partnership. Members of this organization will work to promote policies that facilitate the development of shale as an energy resource. Jay Timmons, present of the National Association of Manufacturers, says US manufacturers need reliable and affordable energy sources to compete with overseas manufacturing firms. The growth of the shale gas industry has already created more than two million jobs, and it is also expected to generate more than $2 trillion in tax revenue by 2035. This makes the United States a more attractive option for manufacturers looking to set up new facilities.
The energy industry is seeing tremendous growth as the result of natural gas production, but other industries are also experiencing benefits. Shale represents an extraordinary opportunity for manufacturers to reduce their operational expenses and also makes it more likely that new manufacturing companies will see the benefits of operating in the United States instead of overseas. Shale gas production is set to create millions of new jobs, so be prepared for additional opportunities in your niche.
(Photo courtesy of freedigitalphotos.net)
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