Executive Briefings

Reshoring Seems to Be More About Consumer Demand

Is reshoring (the return of manufacturing to the U.S.) really even a debate? A debate would indicate that there are two compelling sides to the argument, but from what I see, the hard and fast facts of the economy preclude a debate.

From 2007 to 2009, approximately two million U.S. manufacturing jobs were lost due to the recession. If the current pace of recession recovery continues, it would still be 25 years until the U.S. could recover all these jobs.

Some would argue that companies are indeed reshoring right now. However, an article from July 24, 2013 in The Guardian indicates that fewer than 100 companies have reshored jobs back to the US.

What are business leaders saying about reshoring? A survey by the Tompkins Supply Chain Consortium asked vice presidents, directors and others who hold C-level positions in a variety of industries what they thought on this topic. You can access the full report on the survey here.

One way to view how the developing "trend" of reshoring is to examine how manufacturing itself is becoming a global, yet local, enterprise. Some companies are moving manufacturing to the U.S., but they are also moving it to China, Mexico, Canada, parts of Europe, countries in Africa, India - essentially around the world - because they want to be closer to customers (nearshoring).

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Keywords: international trade, global logistics, nearshoring vs. reshoring, manufacturing locations, supply chain management, logistics & supply chain

From 2007 to 2009, approximately two million U.S. manufacturing jobs were lost due to the recession. If the current pace of recession recovery continues, it would still be 25 years until the U.S. could recover all these jobs.

Some would argue that companies are indeed reshoring right now. However, an article from July 24, 2013 in The Guardian indicates that fewer than 100 companies have reshored jobs back to the US.

What are business leaders saying about reshoring? A survey by the Tompkins Supply Chain Consortium asked vice presidents, directors and others who hold C-level positions in a variety of industries what they thought on this topic. You can access the full report on the survey here.

One way to view how the developing "trend" of reshoring is to examine how manufacturing itself is becoming a global, yet local, enterprise. Some companies are moving manufacturing to the U.S., but they are also moving it to China, Mexico, Canada, parts of Europe, countries in Africa, India - essentially around the world - because they want to be closer to customers (nearshoring).

Read Full Article


Keywords: international trade, global logistics, nearshoring vs. reshoring, manufacturing locations, supply chain management, logistics & supply chain