Oil Costs Hurting Manufacturers

The Wall Street Journal reports that manufacturers that rely on quick delivery for time-sensitive products have in the past benefited from inexpensive transportation costs.  Now, with oil reaching a record $143 a barrel on Monday, those businesses are being hit hard by the soaring costs and are looking for cost-saving alternatives.

U.S. manufacturers that purchase their components from Asia, India and/or Europe are finding those goods to be more expensive because of higher transportation costs and are now more interested in U.S.-made goods.  Many analysts are also speculating that U.S. may see a return of certain types of manufacturing companies  to the U.S., simply due to the higher transportation costs.