One of the most important economic trends is the emergence of the U.S. as a low cost energy producer, especially of natural gas. As we wrote last February, this is a game changer for the U.S. economy.
A recent Bloomberg article covers the likely positive impact abundant and cheap natural gas will have on the U.S. economy in the coming years. According to the article, a recent study by Citicorp found that cheap natural gas will likely lead to a "reindustrialization" of America and "could add as many as 3.6 million jobs by 2020 and increase the gross domestic product by as much as 3 percent."
These are huge numbers.
These impacts come in part from the oil and gas industry directly. But even more important are the downstream impacts low-cost fuels will have on industries such as steel, aluminum, automobiles,fertilizers and chemicals.
All of these industries, as well as many others, will find the U.S. a more attractive place to locate manufacturing due to abundant and cheap energy.
No matter what business you're in or where you're located, the U.S. energy boom is likely going to impact you. Our advice to small businesses is to think through the potential impacts this powerful trend will have on them.
Comments