There's doggy do on our welcome mat

I have often written about an interview I watched between celebrated talk show host Charlie Rose and technology giant Cisco's CEO, John Chambers.

It wasn't that long ago, taking place at a time when prominent economists and congressmen were voicing deep concerns about the health of the US economy.

Analysts expressed fears about the inflationary harm the central bank's extensive accommodative monetary policies would cause for Americans, and senate house committee members repeatedly challenged then Federal Reserve chairman, Ben Bernanke, on issues, from unacceptably high levels of unemployment to the size of the budget deficit.

The top worry was the loss of manufacturing jobs to other countries, particularly China. It was attacked for manipulating its currency downward, a move antagonists said was calculated to make China's manufactured products more competitive.

Rose discussed America's shrinking production base, and asked Chambers what he considered the best place to establish a factory. Chambers selected Canada .

Many of those grumbling naysayers are silent lately. The US economy has shaken off its hangover from the financial crisis and is storming ahead. It has left Europe in the dust and will probably add more to world growth this year than China.

In the US, GDP growth is expected to reach around 3.0% this year. Unemployment has fallen to 6.1%, the housing market is reviving, consumer confidence rising and the budget deficit returning to historical averages.

America is on track to become the world's biggest oil producer by next year, a shift that is moderating energy prices and reducing the nation's import bill.

More important is that manufacturing is slowly returning to the US. From 2000 to 2010 more than 6 million factory jobs were lost to competing economies. But rising wages in Asia, the growing role of technology in production and cheap supplies of energy have narrowed the advantages of offshoring. Estimates are that nearly 30% of lost production will eventually come back home.

It is not only US industrialists who are setting up factories on American soil. Recently Bloomberg TV reported that four Chinese manufacturers had launched production facilities in Alabama. Golden Dragon, a copper pipe manufacturer, opened a factory in Willcox County that will employ 300 workers. Management was attracted by lower energy costs, predictable wage levels, faster delivery to US customers and the absence of tariffs.

The governor of Alabama is claiming some credit for creating an environment that is enticing foreign businesses. One innovation he introduced was an on-site facility that trained the workforce according to specifications laid down by the owners.

In 2013 Chinese manufacturers invested $14-billion in the US, employing 70000 Americans, considerably up from 10000 in 2007.

Texas is also going all out to attract the Chinese. China's Tianjin Pipe has completed a $1-billion plant in Corpus Christi. It will create 600 jobs in the region and will supply the energy industry. Management chose the area because of easy access to raw materials, the availability of power and skilled workers, and the state's legal system, regulatory policy and friendly tax laws.

Governor Rick Perry said: "Capital goes where it is welcome. In Texas the welcome mat is out."

My personal interest in stories like these is to gain insights into what we need to do in this country to persuade top global manufacturers to do business here.

It's not only cheap energy, a willing and skilled workforce and an accommodative regulatory environment that we have to offer industrialists, but also a quality of life that comes with a crime- and corruption-free existence. At present, if you think about it, our welcome mat is covered in dog pooh.