Moreover, the share of executives saying that their companies are actively reshoring production increased by about 250% since 2012. This suggests that companies that were considering reshoring in previous years are now taking action. By a 2-to-1 margin, executives said they believe that reshoring will help create U.S. jobs at their companies rather than lead to a net loss of jobs. “These findings underscore how significantly U.S. attitudes toward manufacturing in America seem to have swung in just a few years,” said the BCG report. “We are seeing more evidence of an American manufacturing renaissance. There is good reason to believe that the cost-competitiveness of the U.S. compared with China and many other economies will continue to improve in the near term.”
This year’s survey also confirmed that factors such as logistics, inventory costs, ease of doing business, and the risks of operating extended supply chains are weighing heavily in executives’ decisions. (76% of respondents reported that a primary reason for reshoring production of goods sold in the U.S. was to “shorten our supply chain,” while 70% cited reduced shipping costs and 64% said “to be closer to customers.”) The decreasing costs and improved capabilities of advanced manufacturing technologies such as robotics also make manufacturing in the U.S. more attractive than in economies whose chief advantage is cheap labor.
Classroom discussion questions:
- Does reshoring mean a resurgence in manufacturing jobs?
- Why are more companies considering returning?