Increasing numbers of US-based manufacturing businesses are planning to “reshore” production from China back to the US, according to a recent survey.
The Boston Consulting Group (BCG) said 54% of US-based manufacturing executives at companies with sales greater than US$1bn were either planning to bring back production to the US from China, or were actively considering it, up from 37% in February 2012.
The survey brought responses from more than 200 decision makers at companies from a broad range of industries, BCG said.
Rising wages are prompting 21% of executives – about twice as many as in 2012 – to move production back to the US either immediately or within the next two years.
The top three factors cited are labour costs (mentioned by 43% of respondents), proximity to customers (35%) and product quality (34%).
“Over the past couple of years, we’ve projected an improvement in US manufacturing competitiveness by 2015 that would help drive an American manufacturing revival,” said Harold Sirkin, BCG senior partner and a co-author of the study.
“The results of our latest survey make clear that a profound shift in attitude is beginning.”
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