The reshoring movement - repatriating production back to the US from overseas - is gaining steam.
In a piece produced and posted by Reuters Insider, and using data collected in a joint survey by MFG.com and Reuters, the reshoring trend is examined and discussed by CEOs, shop floor workers, economists and journalists.
Click the image below to watch the reshoring video, and bask in the warm glow that - if this trend continues - could have wide-reaching ramifications for US manufacturing and the economy for years to come:
Among the highlights of the Reuters piece, and survey results of North American buying manufacturers in the MFG.com marketplace:
- According to Peter Dorsman, Senior VP of Global Operations for NCR, who recently moved production back to the US from China to respond more quickly to competition and market trends, he's gotten many phone calls from CEOs of other companies looking to follow suit and reshore some or all production.
- Reshoring isn't easily measured, making it a wild-card in the economic recovery.
- Ford Motor Company and Wham-O (the makers of the Frisbee) are cited as having already brought production back to the US.
- From the Reuters/MFG.com survey, 40% of North American manufacturers with offshored production are investigating bringing that work back to the US within the next year.
- Of all the companies surveyed in the Reuters/MFG.com survey, 15% say they have repatriated production back into the US in the past 2 years.
- William Strauss of the Federal Reserve Bank of Chicago says that he sees more work coming back into the US.
- Diane Swonk of Mesirow Financial says that trends like reshoring often sustain for decades as opposed to years (just as the offshoring trend), and that she believes that now that the risks with offshoring have been revealed we'll see 100's of thousands of jobs repatriated over the next 5 years.
- MFG.com CEO & founder Mitch Free points out 'the multiplier effect' - that for every manufacturing job, 7 or 8 ancillary and support jobs downstream - in logistics, support, retail and services - may be created, which can lead to a cascading effect that greatly improves employment in the US.
- Presair, a small manufacturer north of New York City, will return production of its switches from China by this Fall, 2011. The reasons included long lead times for product and the tying up of capital needed for expansion. While Presair will see its costs jump 8% with the move back to the US, its CEO Art Blumenthal believes those higher costs will evaporate with the rising costs of manufacturing in Asia.
- Labor costs in China, according to a study by Boston Consulting Group, are rising and are expected to continue rising.
- NCR is going gangbusters, with plans to begin a second production shift in July, which will result in a total of 800 new (reshored) jobs to Columbus, Georgia.
As reshoring gains momentum, MFG.com will continue to monitor the behaviors and reshoring activities of US Manufacturing via its quarterly MFGWatch Survey of North American Manufacturers.