Uncategorized
May 16, 2012
According to a recent report and survey released by The Boston Consulting Group (BCG), changing economics are starting to favor the manufacturing of certain goods in the U.S. and more than a third of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the United States from China or are considering it.
According to the survey, which was conducted in February, of the 106 decision maker respondents at companies across a broad range of industries, 37% said they plan to reshore manufacturing operations or are “actively considering” it. That response rate rose to 48% among executives at companies with $10 billion or more in revenues, which accounted for a third of the sample.
The top factors cited as driving future decisions on production locations were:
- Labor costs (57%)
- Product quality (41%)
- Ease of doing business (29%)
- Proximity to customers (28 %)
In addition, 92% said they believe that labor costs in China “will continue to escalate,” and 70% agreed that “sourcing in China is more costly than it looks on paper.”
These findings coincide with the BCG’s report released in March, U.S. Manufacturing Nears the Tipping Point: Which Industries, Why, and How Much?, in which BCG predicted that improved U.S. competitiveness and rising costs in China will put the U.S. in a strong position to add two million to three million jobs in a range of industries and an estimated $100 billion in annual output by the end of the decade.
Categorias: Uncategorized
Tags: manufacturing industry manufacturing trends us manufacturing,
