Expert: Manufacturing May Return To U.S., But With Fewer Jobs
(CBS) -- A local business expert says President-Elect Donald Trump might be able to keep his campaign promise of pressuring companies to keep their factories on U.S. soil or bring jobs back.
WBBM Political Editor Craig Dellimore reports.
Dan Heiser chairs the Department of Management and Entrepreneurship at DePaul University.
He says he's not surprised that state tax incentives and promises of lower corporate tax rates help keep heating and cooling company Carrier from moving completely from Indianapolis.
Heiser says lower corporate taxes and state incentives—which helped Carrier decide to keep its Indiana plant—can be persuasive for a lot of companies thinking to relocate.
The Depaul Associate Professor says rising labor costs overseas might also help persuade some companies to bring manufacturing back to the U.S., especially with modern, high-tech plants.
They do not require as many workers, so labor costs might be lowered a bit.
"I actually do perceive a resurgence of American manufacturing. I don't perceive a resurgence in employment in the manufacturing sector," Heiser says.
Another factor? President Elect Trump has threatened to slap high tariffs on goods made overseas.