Blog posts tagged with Reshoring

Reshoring gets welcome attention; Good business climate necessary to take advantage of potential

May 01, 2012 by MAGNET Ohio

"Onshoring" / "Insourcing" / "Reshoring" These are the names of an emerging trend to bring manufacturing production back to the U.S. that has been taken overseas (often to China) over the past several decades–primarily to take advantage of lower cost labor. For a variety of reasons, bringing these jobs back has become a viable option in some cases. These include situations where the overseas wage advantage has eroded, transportation costs have risen, and currency valuations shifted to favor U.S. production.  In addition, demands for just-in-time delivery, managing quality in supply chains, and reactions to environmental and political disruption in some overseas markets, have prompted companies to look at reshoring as an option. Big consulting firms like Boston Consulting Group, Alix Partners, McKinsey, and Accenture have all studied the reshoring potentials.  In some instances they advocated to their manufacturing clients that they seriously look at reshoring as a business option. Reshoring also is very popular politically.  President Obama has established an Insourcing Initiative, partly to leverage the experience of some of the big companies like General Electric and Caterpillar that have been in the forefront of reshoring.  G.E. recently as announced that it will bring enough jobs back from China that

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