The reality of reshoring: global manufacturing becomes local


There continues to be survey after survey that show U.S. manufacturers are truly rethinking the whole off-shoring game. This month, results of a survey by Boston Consulting Group (BCG) were released that revealed that rising Chinese wages, logistics and other factors are forcing companies to rethink where they manufacture. In fact, the survey of decision makers at 106 companies across a broad spectrum of industries showed that more than one-third of U.S.-based manufacturing executives of companies with sales greater than $1 billion are planning to bring back production to the U.S. from China or are considering it. That response rate rose to 48% among executives at companies with $10 billion or more in revenues - a third of the sample, noted BCG.

We can see that reality in the companies such as General Electric's Appliance division, which has reshored some appliance manufacturing from China and Mexico. The company invested $250 million in its Louisville, KY Appliance Park, representing the second GE facility to open within a month, and the first new plants at the Park in more than 50 years.

Whirlpool Corp. recently opened a new manufacturing plant in Cleveland, TN, replacing a 123-year-old facility, making a $200 million investment and adding about 130 jobs to the current Whirlpool workforce of 1500 people in Cleveland. Whirlpool's Chairman and CEO, Jeff Fettig, boasted of the company's commitment to manufacturing in the U. S., stating in a Letter to the Editor in the Cleveland Daily Banner that "80% of what we sell in America is made in America. No other appliance manufacturer can come close to that commitment to the US workforce."...
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