Avolusis Journal

With growth slowing and costs rising around the globe, US companies are looking to add manufacturing in the US — sometimes moving production away from overseas.

United Rentals plans to increase capital spending by $1 billion this year.  Cummins, maker of diesel engine, is looking to double capital spending compared to two years ago.  Carlisle Companies is looking to bring back tire production from China to the US due to, rising wages overseas, higher transportation costs, and the shipping time of goods from China.  Union Pacific plans to buy twice as many locomotives this year, spending upward of $400 million.   The auto industry too is looking to add shifts or expand plants in the US, with some hoping to use the US as a production source for markets in Latin America and Asia.  

Whether this translates to job gains is a different story — most of the capital investment is in productivity gains.  And a broad based turnaround may still be some time away.  Of the 55 companies that provide 1Q earnings forecasts, 43 said they expect it to be weaker, according to Thompson Reuters. 

(Source: The Wall Street Journal)