Economist Predicts Boom In Latin American Manufacturing

 Once thought of as a growth area for manufacturing but overwhelmed by competition from the Far East, Latin America will soon see a manufacturing revival, according to an economist for the fabricating and metalworking industry. Chris Kuehl, economic analyst for the Fabricators and Manufacturers Association, International (FMA) predicted the revival in the current FMA economic update newsletter Fabrinomics. According to Mr. Kuehl, the once-formidable benefits provided by manufacturing in China, India and other Asian states are eroding. With rising fuel costs, hauling cargo across the ocean in diesel-burning ships much more expensive, making it more cost-effective to be closer to the U.S. market. In addition, Chinese labor isn't as cheap as it once was, especially in fast-growing coastal cities. China is also contending with 8.3-percent inflation. Mr. Kuehl says the same pattern is developing in other Asian supplier states, which are also experiencing a lack of skilled labor and capable managers. These developments point to a return of the manufacturing sector to Mexico, Central and South America and even sections of the U.S. "Now that the cost advantages are fading, the appeal of working with our neighbors to the south has become obvious," Mr. Kuehl says. For more information from the Fabricators & Manufacturers Association, Intl., visit www.fmanet.org.