Executive Briefings

Where's the Rush to Bolt from China and Reshore in the U.S.?

This spring, President Obama said he had "good news" to report: Lost American jobs are returning to the U.S. "For a lot of businesses, it's now starting to make sense to bring jobs back home." In trumpeting this "reshoring" of jobs from abroad, the administration points to employers, including General Electric and Caterpillar, that have shifted some manufacturing to the U.S. The president also cited an April online survey by Boston Consulting Group showing that 37 percent of manufacturers with sales of more than $1bn and almost half of those with more than $10bn "plan to or are actively considering bringing back production from China to the U.S." Yet there's little data to back up claims of a reshoring rush.

For every company Obama praises for coming back home, there are others still shipping jobs out of the country. Honeywell International in Acton, Mass., plans to eliminate 23 positions by year's end when manufacturing of the company's stainless steel products moves to Nanjing, China. Boston Scientific let go about 1,100 workers when the company moved production of its medical stents from Miami to Costa Rica.

The net effect of this two-way traffic on the labor market has been "zero," says Michael Janssen of The Hackett Group.

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Keywords: international trade, supply chain management, global logistics, retail supply chain, sourcing solutions, manufacturing returns to U.S.

For every company Obama praises for coming back home, there are others still shipping jobs out of the country. Honeywell International in Acton, Mass., plans to eliminate 23 positions by year's end when manufacturing of the company's stainless steel products moves to Nanjing, China. Boston Scientific let go about 1,100 workers when the company moved production of its medical stents from Miami to Costa Rica.

The net effect of this two-way traffic on the labor market has been "zero," says Michael Janssen of The Hackett Group.

Read Full Article


Keywords: international trade, supply chain management, global logistics, retail supply chain, sourcing solutions, manufacturing returns to U.S.