As the US shale gas boom grabs more headlines and its impact is being felt by all segments of the transportation industry, now may be a good time for supply chain managers to starting tuning into this phenomenon.
Sure, a lot of the mainstream conversation currently still focuses on how this new energy source is boosting the US economy (shale gas currently accounts for 44 percent of total US natural gas production) or on the physical movement of the gas from the field to the processing plants. But, those savvy types running different cost-reduction scenarios and what-if logistics modeling, will see another story bubbling up in between the lines of the latest news article and how a domino effect could come into play here.
There are a few ways the high-tech industry may benefit both directly and indirectly from the shale gas noise. One is by being a supplier to this growing industrial sector. Shale gas operators are maturing and realize legacy systems do not adequately serve their needs. Second (and third) the wave of manufacturing coming back to the US might create advantages both within high-tech organizations and from suppliers that are onshoring production.
PwC, in its “Shale energy: A potential game-changer” report, points out: This new source of abundant, low-cost energy is proving to be a significant incentive for chemical producers and manufacturers to shorten their supply chain and bring production facilities back to the United States. A revived manufacturing sector would increase the need for rail and trucking to move more products domestically and for shipping exports abroad.
Read more: http://www.ebnonline.com/author.asp?section_id=1061&doc_id=271691