Despite a slow economy, North American CEOs have their sights set on growth, expecting their companies to increase revenues by an average of 14.6 percent over the next three years, according to the 20th Annual Survey of Third-Party Logistics Provider CEOs.
The shift by manufacturers from offshore locations in Asia back to the U.S., Mexico and other parts of the western hemisphere is more than anecdotal, says David Kilzer, senior vice president of supply chain solutions with Idhasoft. He outlines the factors that are causing companies to rethink their supply networks.
What began as a trickle of stories about challenges to China's supposed economic dominance has become a steady flow. It began with revelations of working conditions at Chinese factories. Soon we were reading about rising wages in the industrial sector - great for Chinese workers, but sure to make the country a less attractive source of cheap manufacturing for the West. Then there was the recent slowdown in China's foreign direct investment, along with the nation's struggle to create an economy that's geared more toward domestic consumption in the service of a growing middle class. Meanwhile, serious questions persist about the stability of China's banking system. And just last week, we learned that China's trade surplus with the U.S. is rapidly shrinking, as the country wrestles with the consequences of a stronger yuan.