5 reasons the US is a hot emerging market

An investing guru says America is about to see a startling industrial rejuvenation.

By Kim Peterson Apr 22, 2013 2:53PM
Boilermaker at work -- Lloyd Sutton, AlamyInvestors on the prowl for the next big emerging market should look no further than the U.S. That's according to Antoine van Agtmael, who coined the term "emerging markets," according to The Wall Street Journal.

In an interview with the Journal's Jason Zweig, van Agtmael says the country is just embarking on an industrial revitalization. Most analysts are only starting to recognize this. If investors realized the scope of what's about to happen, perhaps they wouldn't have been so eager to get out of stocks over the last year.

Here are five reasons why van Agtmael thinks the U.S. is the next great emerging market, according to Zweig:

The U.S. is competing with China.
Van Agtmael said that when he visited China last year, one executive complained about the competition from America. Part of the reason the U.S. is suddenly competitive is because labor costs in China have risen about 15% annually. And though American lawmakers are talking about raising the minimum wage, the cost of labor has been relatively flat.

U.S. is getting cheap energy. The country is seeing a shale oil and natural gas boom, as new technologies have allowed companies to extract previously unavailable oil from deep underground bedrock. "The availability of shale in the United States and around the world has to be one of the biggest game-changers I’ve seen in my career," said General Electric (GE) CEO Jeff Immelt, according to The Washington Times.

U.S. has decent cellphone infrastructure. OK, we may be getting lapped in this area by Norway, South Korea, Japan and Sweden, but at least our infrastructure is better than China's.

U.S. has better factory technology. Factories are incorporating three-dimensional printing, which can advance product design and prototyping, according to Gartner. It's already being used in car manufacturing and the medical and pharmaceutical businesses. And executives are bringing more robots into factories, automating tasks and making production more efficient.

The migration to the U.S. has begun.
Some 200 companies have moved their factories to the U.S. from offshore locations, van Agtmael estimates.

More on moneyNOW


Tags: GESPY
53Comments
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The author would like us all to feel better. Nice try, but reality does not show the US as a hot emerging market. Five reasons why-

Bernanke

No jobs

Obamacare

Smaller pay checks

We are becoming more of an entitlement country

Apr 22, 2013 4:04PM
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Absent of leadership we are bcoming an emerging or third world country. 
Apr 22, 2013 5:19PM
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Americas biggest problems are poor leadership (president, congress and the fed), corruption, high debt, inflation and a people who expect government to solve their problems. Until America handles these problems, we are going no where economically. There is nothing new about these problems, they have caused the fall of every major civilization in our 7000 years of history. 
Apr 22, 2013 3:26PM
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I like the way this all sounds. It sounds great for the investors. But when will the American workers start seeing some results. I love how this article makes it a point to glamourize the stagnant US wages. This is the equivalent to a kick in the you knows to the American Worker followed up by a handshake.
Apr 22, 2013 3:29PM
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One factorI feel is important is worker productivity. Productivity in the US has steady increased over the years while the workers wages have been flat or even declined in some industires. I dont think the minimum wage has much to do with anything as most business hire skilled workers who make far more than the minimum wage. The business who tend to hire minimum wage workers are food service and retail, both of which cannot completely outsource their labor. I dont believe we will see "reshoring" of factories but instead of China they will move to Vietnam, Loas, or Cambodia.
Apr 22, 2013 3:32PM
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Just when we are becoming an emerging market, Obamacare is going to kick in and crush the small businessman. Yay!! epic fail all over again.

Apr 22, 2013 3:24PM
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How are flat earnings of workers and increased robots in factories going to provide enough consumer spending to make the USA an emerging market?  Is it expected the USA will export to foreign countries like Germany where a decent living has been preserved and income-inequality is much less?
Apr 22, 2013 3:30PM
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I believe in the next 3-5 years a lot of this may become true. I was thinking along the lines that the US is progressing towards becoming the worlds largest oil exporter. We just got to get through the next couple of years of recovery and transition.
Apr 22, 2013 6:29PM
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what a bull story! 

 

what will emerge in USA?  a new 3rd world nation? 

 

the country is slowly dumbing down from weak education, manufacturing has left USA with just a few people left to turn off the lights. 

 

from what my college continues to report, engineering enrollment continues to be low.  from what i see at work, there ARE no new engineers. 

Apr 22, 2013 3:43PM
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If what most of us suspect is true concerning actual global crude supplies, the additional supplies from America should push down price. If the free markets are allowed to function, that would mean less jobs in the Oil Industry. Why, because the cheaper crude price along with oversupply can't justify drilling with more expensive methods.

So if the United States has 3-D printing, then wouldn't everyone else. Cellphones, who freaking cares about cellphones. Automation means less jobs and less folks spending.

If wages aren't rising, don't expect any real recovery. Regardless of how much Uncle Ben and the Global Feds print. This guy might be good at picking stocks, however he knows next to nothing about the economy.

Apr 22, 2013 6:52PM
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We're just embarking on an industrial revolution?  Are you effing serious?  Whoever believes this clearly isn't familiar with US tax policy, EPA regulations, Obamacare and our entitlement society as a whole.  Even if you could manage to overcome the first 3, where exactly are you going to find enough people who are actually willing to work, without having to pay them $30/hr plus 5 weeks vacation and a full benefit package?  And if you can afford all these things and still turn a reasonable profit, chances are you're doing something illegal.
Apr 22, 2013 4:34PM
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America can rebound when it gets its act together people not Politian's make the  country ,there has to be a collective part  of the people to will it so. No other  country lets another dump  unlimited duty free goods on its shores without taxation ,tariff or over sight I  believe once we stop letting media ,bumper stickers and outrageous lies dictate our politics we will move in the right direction .I believe all tv is reality tv and google and internet are big brother remember the NSA has and needs the means to track us what better way. Just like in communist countries where the state own television shapes the minds of its citizens why not here,maybe big brother those who own or shape politics are the directors. I have yet to meet anyone from another country who believes hollywood realistically portrays its nation. Why is it so hard to believe our  political establishment is not all paid actors,lets face it regular everyday people don't get elected and don't seem to have free will when they do get elected. Think about it how can any resource rich nation be poor Russia is one of the richest resource nations on earth are they punished because they don't wish to play the game.
Apr 22, 2013 5:02PM
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Make up your mind. Last week we were days away from a 20% sell off now we are the next emerging market.
Apr 22, 2013 5:46PM
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Have you noticed that most American leading men actors are no taller than 5'8". No more John Waynes out there just a bunch of pip squeaks.
Apr 22, 2013 6:37PM
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Now all we need is a better monetary policy.
Apr 22, 2013 4:33PM
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Wow. You would they would catch a lesson from Tony Roma's! Food was actually decent, with moderately high prices. The quality of food went down, the service sucked, and the place (at least here) looked trashy and dark...It felt as if you were a neanderthal in a cave gnawing on a bone encased in fat, dripping in overly gooey sauce. Sounds a lot like the complaints written here. As my daddy used to say..."Hard money earned, is hard earned money spent...nothing is for free". You want our trust? Earn it!! Just like WE have to do in order to spend it !!!!!!!! 
Apr 22, 2013 4:05PM
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FInally the US recovery is getting some respect it deserves. If everyone keeps waiting for things to be perfect then you are going to miss out big time,
Apr 22, 2013 3:20PM
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We have better cellphone infrastructure than China?  If true it amazes me.  China never had much in the way of landlines and when they started making better livings cellphones were the way everyone went.  When I cruised the Yangtze River in 2001 and we passed some of those $800/yr income farms with water buffalo plowing the fields, there were still advertising signs in Roman letters and Chinese characters meant for the locals from "China Telecom."  And that included the Three Gorges where high cliffs meant there had to be a lot of communication towers.

Apr 22, 2013 9:17PM
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Industrial rejuvenation... wait, I have to answer this text.... industrial rejuv... dang, another text. What was I doing again... indust... text... whoa, that's a good one, two guys just jumped... what's up? Why are you guys here... job? I'm supposed to make stuff... wait, another text...

YOU CAN FOOL SOME OF THE PEOPLE SOME OF THE TIME BUT BEFORE ANY INDUSTRIAL REJUVENATION, WE WILL NEED TECHNOLOGICAL COLD TURKEY.

Apr 23, 2013 3:02AM
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oh please, where is this stuff coming from?  i'll believe it when i see it.  with increases in cost of food, transportation, insurance's & EVERTHING else, my net raises are negative. meanwhile my employer demands more and more from its emplyees. include that i am doomed as a woman, doing the same work as male counterparts and making 17% less. male/female, doesn't matter we're all reemed!!!!!!!!!!!!!  i am so sick of hearing usa, usa when our beloved us is has become all about the wealthy and entitled. so depressing :(

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