U.S. is an increasingly low-cost manufacturing hub

When people think of countries where manufacturing is cheap, they rarely think of the United States. For decades, the prevailing wisdom has been that it is too expensive for factories to operate in the U.S., and as a result, manufacturing companies have had an incentive to move their operations offshore.

However, a number of factors have changed during the past few years. According to an article on CNBC, it may even be fair to refer to the U.S. as a "bargain manufacturer."

The article cites a report by the Boston Consulting Group (BCG), which predicts that by 2015, average production costs in Germany, Japan, France, Italy and the U.K. will be between 8 and 18 percent higher than in the U.S. This is already leading to a manufacturing renaissance. 

"Despite all the public focus on the U.S. trade deficit, little attention has been paid to the fact that the country's exports have been growing more than seven times faster than GDP since 2005," the BCG concluded.

Among the reasons that the BCG highlighted for the U.S. to become more attractive to business is the fact that productivity is high, labor costs are lower and energy is cheaper. This is partially the result of increased oil and natural gas exploration, which has been on the rise significantly in many states, including Texas.

In fact, Texas has positioned itself as an excellent candidate for the U.S. manufacturing recovery. Thanks to low taxes, a friendly business climate and plenty of oil exploration, Texas is a good location for CNC machine shops and other factories.