The Alliance for American Manufacturing (AAM) Executive Director Scott Paul was part of an interesting discussion on CNBC today.  Hosts Mandy Drury and Brian Sullivan wanted to know why 2012 may be the first year since 1998 to see more U.S. manufacturing plants open than close.

Paul explained that U.S. factories enjoy the highest productivity in the world, and thanks to changing market conditions (including a boom in domestic gas production that has led to lower energy costs), they are becoming more competitive.

A key point is that U.S. factories are extremely high-tech, and so they can compete in the more technology-intensive sectors.  Labor-heavy production (unskilled work) may still move overseas, but given the right policies at home, American manufacturers can compete successfully in higher-value areas like steel, energy, and transportation products.