Industrial Insight

reshoring is happening… | April 27, 2012

http://www.manufacturing.net/news/2012/04/report-third-of-large-manufacturers-considering-reshoring?et_cid=2615970&et_rid=60898700&linkid=http%3a%2f%2fwww.manufacturing.net%2fnews%2f2012%2f04%2freport-third-of-large-manufacturers-considering-reshoring

Report: Third Of Large Manufacturers Considering Reshoring

Thu, 04/26/2012 – 12:23pm

Decision makers at 106 companies across a broad range of industries responded to the survey, which BCG conducted in late February. Thirty-seven percent said they plan to reshore manufacturing operations or are “actively considering” it. That response rate rose to 48 percent among executives at companies with $10 billion or more in revenues—a third of the sample.

The top factors cited as driving future decisions on production locations: labor costs (57 percent), product quality (41 percent), ease of doing business (29 percent), and proximity to customers (28 percent). In addition, 92 percent said they believe that labor costs in China “will continue to escalate,” and 70 percent agreed that “sourcing in China is more costly than it looks on paper.”

The results are consistent with earlier BCG findings on

the changing economics that are starting to favor the manufacturing of certain goods in the U.S. In a report released last month, U.S. Manufacturing Nears the Tipping Point: Which Industries, Why, and How Much?, BCG predicted that improved U.S. competitiveness and rising costs in China will put the U.S. in a strong position to add 2 million to 3 million jobs in a range of industries and an estimated $100 billion in annual output by the end of the decade.

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1 Comment »

  1. It is a trend everyone has been waiting for. Manufacturing jobs are a source of employment for people in the United States that has been greatly missed. It is good to hear the US is getting back in the game.

    Comment by Greg — May 1, 2012 @ 10:22 pm


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