Study: offshoring decline boosts US manufacturing – DC Velocity

Study: offshoring decline boosts U.S. manufacturing

About 50,000 jobs added stateside in past 12 months.

By DC Velocity Staff

A slowdown in offshoring activity has helped revive manufacturing in the United States, with
about 50,000 jobs added domestically in the past 12 months, according to a study from TD
Economics, an affiliate of TD Bank.

The study, “Offshoring,  Onshoring, and the Rebirth of American Manufacturing,” says that the uptick in onshoring stems from a
combination of global and domestic factors. Globally, the cost advantages of offshoring have been weakened
by a combination of rapidly rising Chinese wages, the appreciating value of the Chinese renminbi, and volatile
transportation rates.

Domestically, leaner and more flexible supply chains, a trend towards mass-customization, and access to
natural gas from shale formations have made U.S. manufacturing more viable, the report found.

The report noted that offshoring has “slowed to a trickle” in two industry categories: computers and electronics
and plastics and rubber. Those and other capital-intensive industries like machinery, fabricated metals, and
electrical equipment will lead the on-shoring trend for U.S. manufacturing, according the report author Michael Dolega.

On the other hand, labor-intensive industries such as apparel and textiles will likely remain offshore, the report said.

Feedback: What did you think of this article? We’d like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please
?Subject=Feedback – : Study: offshoring decline boosts U.S. manufacturing”>contact Editorial Director Peter Bradley. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.