The Global Manufacturer

Evidence for U.S. Manufacturing Reshoring Builds

A new study finds that 40% of manufacturing firms believe there is increased movement of production back to the U.S. from countries such as China and India.

The study, sponsored by the Council of Supply Chain Management Professionals, found that factors such as rising labor costs in emerging economies, high oil prices and transportation costs, and political instability are fueling the movement of manufacturing back to U.S. shores. Other factors include concerns about intellectual property and product quality.

“We were surprised by the large percentage of firms indicating that they are considering reshoring,” commented Tobias Schoenherr, a co-author of the study and assistant professor in Michigan State’s Department of Supply Chain Management.

Among the industry sectors surveyed, those leading the reshoring movement included aerospace and defense, industrial parts and equipment, electronics and medical and surgical supplies.

The study found that nearly 38% of the 319 companies surveyed reported that their direct competitors have reshored.

The study’s findings closely reflect an April survey by the Boston Consulting Group (BCG) that found that 37% of large manufacturers were planning to reshore manufacturing operations or were actively considering it.

In September, BCG released research which projected that cost advantages in energy and labor could shift manufacturing from Europe and Japan to the U.S. and result, along with reshoring from China, in a gain of 2.5 to 5 million jobs. BCG said U.S. exports could grow by $130 billion annually by the end of the decade.

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