The US is in the early stages of a “manufacturing renaissance,” with firms moving their manufacturing operations back to the US, says US investment house
Brown Advisory.

This, the firm said, means that the country offers investors strong and sustainable growth potential.

Brown reports that, in the past two years, many global manufacturers have “re-shored” to the US, taking advantage of the dollar’s weakness relative to the euro and the yuan, competitively priced real estate in rural areas (compared to coastal China), and labour and energy costs. The firm believes this trend has powerful long-term implications for the economy, which supports its current emphasis on investing in US equities.

“In our view, the emerging model is that of productive, automated operations that can produce high-value goods with a relatively small workforce and achieve lower logistics and production costs due to falling domestic energy prices,” said Paul Chew, head of investments at Brown Advisory.