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November 22, 2008 9:37:33 CST

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Oil Price Spike Brings Jobs Back to US

Posted Jun 13, 08 11:30 CDT in Business 

(Newser) – As costs for overseas production and shipping soar, US companies are growing reluctant to outsource manufacturing—and some are even bringing their plants back to America, the Wall Street Journal reports. “In a world of triple-digit oil prices, distance costs money," said an economist. But it’s not just the transport: Raw materials are getting pricier, and workers abroad are calling for more money.

One foundry president says shipping costs were “the straw that broke the camel's back." But even domestic transportation is expensive, and for some companies, there are industry-specific reasons to work abroad. “A decent amount of production could come back into the States within five years, not everything,” said a shipper.

Source Wall Street Journal

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A ship is moored by oil tanks in Tokyo Bay in Kawasaki, near Tokyo, Japan, Tuesday, April 1, 2008.   (AP Photo/Itsuo Inouye)
In this June 10, 2008 file photo, a woman walks past the price board at a Shell gas station in San Mateo, Calif.   (AP Photo/Jeff Chiu)
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