Manufacturers Consider Migrating Back to U.S.

IndustryWeek (2/13, Selko) – In the last three years, manufacturers have seen a significant increase in costs related to off-shoring manufacturing for export purposes rather than in country demand. The study found that almost 90% of the companies surveyed are considering changing -- or have begun changing -- their manufacturing and supply strategy and are being more and more selective in making off-shoring decisions.

In addition to the rising costs of conducting business on a global basis, the study found several soft cost issues, which affect the true cost of off-shoring, including:

• Slower Cycle/Delivery Time (59% of respondents)
• Reduced Supply Chain Flexibility and Responsiveness (56% of respondents)
• Lost Visibility, Coordination and Control Over the Supply Chain including Quality (50% of respondents)
• Bottlenecks in Logistics Networks (e.g., ports, transportation) (50% of respondents)