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The US has now overtaken Mexico as the preferred manufacturing and production location for American companies looking to move production away from Asia.
According to the results of consultant Alix Partners’ latest reshoring and nearshoring survey, more US manufacturing executives are interested in bringing production back to their home market than ever before.
Some 42% of respondents said they would choose the US when looking at relocating their manufacturing, compared with 28% who would opt for Mexico.
In last year’s survey, the US ...
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Sandy Montalbano
March 10, 2014 at 8:49 pmQuality is a big reason many companies are reshoring or considering reshoring manufacturing back to the U.S. Other reasons include rising offshore wages, sourcing risks along complicated supply chains, loss of flexibility to respond to customers changing needs, intellectual property risks, and the impact of distance on innovation.
Reshoring U.S. manufacturing encourages technology, innovation and know-how because as research shows, they follow production. And, the manufacturing multiplier effect drives other sectors, creating jobs and investment in non-manufacturing sectors.
New reshoring is now balancing new offshoring at about 40,000 manufacturing jobs/year, resulting in the first neutral year of job loss/gain in the last 20.
According to Harry Moser, founder/president of the Reshoring Initiative www.ReshoreNow.org new offshoring is DOWN by 70% to 80% and new reshoring is UP by 1500%.
The most important accomplishment has been the net-loss of 100,000+ manufacturing jobs each year has ended.
Our user data shows that 25% of manufacturing would come back now if companies used TCO instead of PPV for decisions. Thus creating a 10% manufacturing increase.
The not-for-profit Reshoring Initiative’s free Total Cost of Ownership software helps corporations calculate the real P&L impact of reshoring or offshoring. In many cases, companies will find that, although the production cost is lower offshore, the total cost is higher. TCO Estimator http://www.reshorenow.org/TCO_Estimator.cfm