Economics/Class Relations

American Electronics: A Texas Sized Problem

by Peter Zeihan on November 16, 2022

There’s a few reasons people love manufacturing in Texas – it’s cheap, it follows American law and low tax rates.

Electronics manufacturing is something that Americans haven’t worried about in decades…they could just outsource it to East Asian countries. Now that these countries are facing headwinds in their economic systems, Americans will either have to make it themselves or kiss those shiny toys goodbye.

This reshoring effort will require somewhere in the ballpark of 2 million jobs. Not too bad right? Oh wait, they’ll also need to send some of that labor-intensive stuff to their southerly neighbor. So find somewhere with excess employment capacity, large populations, solid infrastructure, a workforce with diverse skill-sets…and in close proximity to Mexico.

That’s no small feat, but there are a few locations that meet the long list of criteria. Can you guess what city tops the list?

 

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