When Wolfgang Eder and his team started looking around for a site for a new plant for Voestalpine, the Austrian steelmaker he heads, they had 17 sites in eight countries on their list.
This month, after more than a year of looking, they settled on Texas, after a boom in the production of natural gas from shale extraction brought gas prices in the state down to just a quarter of what companies paid in Europe.
"In the USA, re-industrialization is being promoted very consistently, ambitiously and with great conviction," Eder told Reuters. "Low energy prices gave us the final—and not insignificant—push."
With cheap shale gas making the United States a magnet for industrial companies like Voestalpine, many economists are positing a return to industrialization for the world's biggest economy after more than a decade of consumption-led growth.
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"America is currently seeing a renaissance of production," said Felix Schuler, a partner at Boston Consulting Group (BCG) based in Germany, who specializes in the industrial goods sector.
U.S. natural gas prices are $4 per million British thermal units—having touched a decade low of $2 last year—well below its 10-year average of about $5.70 and prices of around $14 in Britain and almost $17 in Asia.
Voestalpine will use natural gas at its new plant, its biggest investment to date at 550 million euros ($712 million), to turn iron ore into sponge iron, which will later be used to make crude steel.
Cheap natural gas not only cuts costs for companies that use it as a raw material or feedstock for other products such as chemicals, it also means lower power prices as utilities use more gas to generate electricity.
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Industrial companies pay about $40 per megawatt-hour of electricity on the U.S. East Coast, where prices have dropped sharply since mid-2008. That compares with about 45 euros ($58) in Germany, 60 euros in Austria and more than 65 pounds ($98) in Britain, creating incentives for energy-hungry firms in the steel and chemicals sectors to invest in new plants and expand existing facilities in the United States.
"The idea that energy costs in North America would always be more expensive no longer holds true. The new reality is that natural gas has turned that equation on its head," Peter Loescher, the chief of executive of German engineering conglomerate Siemens, said in Detroit last month.
The National Association of Manufacturers in the United States estimates the shale boom will add 1 million manufacturing jobs in the country by 2025, as long as natural gas price increases remain moderate and industry regulation is favorable.
"I've spoken to several manufacturers from Europe and Asia who are interested in the shale revolution," said Chad Moutray, the association's chief economist.
Austrian fireproof materials maker RHI is also mulling a new U.S. plant, while it cuts production capacity in Europe due to lower levels of growth.
(Read More: US Oil and Gas Boom Takes Many by Surprise)
Tough targets designed to reduce greenhouse gas emissions in Europe can also act as a push from the old continent.
RHI's chief executive Franz Struzl told journalists this month that the idea the company could cut its energy use by 5 percent a year to meet EU targets was "in the realm of fairy tales."
"We set ourselves these challenges, but at some point one must realize that European industry employs many people and helps economic growth," said Struzl. "What is the alternative? Shall we turn Europe into a financial center?"
U.S. manufacturing output was at its highest level since mid-2008 in February, fueled by a pickup in demand for cars and homes as well as cheap energy. Manufacturers' new orders—an indicator for future revenues—rose 3 percent in 2012.
U.S. companies including General Electric and Boeing are also starting to bring back home some of the jobs they had moved abroad to cut costs, helped by the availability of cheap shale gas. Apple said late last year it planned to move some production of Macintosh computers to the United States from China this year.
"Two years ago, it was uncertain whether the pick-up in the United States was just a catch-up effect. But by now there is significant confidence in the sector that this is not a flash in the pan," said Ulrich Ackermann, head of German engineering association VDMA's Foreign Trade department.