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First, the high U.S. corporate demand for foreign labor and raw materials alone causes a trade imbalance.
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That is, after paying for labor and raw materials, they have at best 30 cents of the revenue dollar remaining to cover overhead and depreciation on their machinery.
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The third positive is the availability of labor, equipment and raw materials.
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The U.S. has a large pool of available labor, abundant raw materials and falling energy costs, said Paul van Eeden, president of Cranberry Capital, a private Canadian holding company.
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Prices for raw materials and labor rose faster than expected.
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Smaller crews of more highly trained workers who can switch jobs with ease, as the research engineers upstream of them dream up new ways to manufacture products using fewer raw materials and less labor.
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So the cost of trade continues to fall, and that lowers the effective cost of everything that's traded: raw materials, labor, durable assets, consumer goods, capital, commodities and money itself.
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The absence of tight oversight has allowed makers of herbal products to flourish, particularly in Utah, where the dry desert air helps keep raw materials and pills and capsules fresh, and where land and skilled labor have been relatively inexpensive.
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Costs affiliated with wages, raw materials, land, and transportation were included as potentially prohibitive with 65% saying that labor was the greatest source of concern.
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