US banking titan Goldman Sachs reportedly says that there’s one catalyst that can spark an American manufacturing resurgence.
Goldman says in a note to investors that artificial intelligence (AI) advancements have massive potential to boost US manufacturing, reports Fortune.
[adinserter block="1"]Says Goldman analysts, including Joseph Briggs,
“A pickup in the pace of innovation – potentially from recent advances in robotics and generative AI – therefore remains the catalyst most likely to reverse the long-run stagnation in manufacturing productivity.”
Goldman analysts say AI is a much better bet for a US manufacturing boost than the tariffs that US President Donald Trump is pushing, claiming that the taxes on imported goods will return manufacturing to the USA and increase jobs.
“Tariffs are unlikely to result in much reshoring because production costs in other countries are well below the US for most products (even after accounting for tariffs), and China will likely continue to grow its exports on the back of cost advantages and industrial policy support.”
Briggs also emphasizes the need for the US to ramp up its efforts in advancing factory automation.
“This is one of the key technologies that I think could drive productivity growth in a cost-competitive manner. And we just haven’t seen that occur on a meaningful scale yet.”
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