Visit Our Sponsors |
America’s manufacturing rebound is facing surprising headwinds from the U.S. dollar. The Wall Street Journal reports that the strengthening currency is making foreign-made goods cheaper to import, handing overseas producers an advantage in selling into the U.S. while American-made exports grow more expensive abroad.
Sales in foreign currencies by U.S. manufacturers operating overseas factories also are worth less because of the unfavorable exchange rates caused by the strengthening dollar.
The dollar’s surge against the euro, the Japanese yen, the British pound and other currencies adds a new wrinkle to the re-shoring drive that has seen some U.S. companies look for domestic alternatives because of unreliable overseas supply chains and rising shipping costs.
Still, the currency shift is helping some U.S. importers of manufacturing components. Wisconsin-based manufacturer Generac Holdings says it is finding better prices for parts that are helping “offset higher logistics costs we’re paying.”
RELATED CONTENT
RELATED VIDEOS
Timely, incisive articles delivered directly to your inbox.