Manufacturing Could Make Reappearance in the U.S. – Daily Political

by admin on April 21, 2012

The old label Made in the USA is making a comeback. A new survey by the Boston Consulting Group says 37% of executives representing manufacturing companies with sales of over $1 billion plan to repatriate production or are considering it. That rate increased to 48% with executives who represented companies that had over $10 billion in sales.

This is the first time this type of survey has been performed by the group. However, less than five years ago, there was no talk of returning manufacturing jobs to U.S. soil. At that time, outsourcing was the only thought on the minds of executives at U.S. manufacturing firms.

Nearly two thirds of the executives from plastic and rubber products companies said they expect to repatriate production from the Far East. Percentages were lower in other industries nevertheless significant. In fabricated metal products, it was 35%, in computers 40%, in electronics 41% and in machinery 42%.   The survey was conducted in the latter part of February and was responded to by upper management at 106 companies across a range of different industries. The biggest reasons driving the executive’s decision on future production were the cost of labor, quality, ease of operating the business and proximity to the final customer. Additionally, 92% indicated they think labor costs in China will begin to escalate and 70% said they agreed that China sourcing is more expensive that what it appears to be when just on paper.

Many in the industry believe the repatriating of production to the U.S. will began in earnest in late 2014 and into 2015.

 
Copyright © 2012 DailyPolitical.com


<!–

 

–>

Source Article from http://www.dailypolitical.com/finance/manufacturing-could-make-reappearance-in-the-u-s.htm

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: