Onshoring US Manufacturing - Strategies for the Future

A recent article published by The Globe and Mail indicates that large US manufacturers are reverting their offshoring business strategies. Larger manufacturers like Boeing Co. and General Electric Co. are now finding that the benefits of lower wages accrued through offshoring strategies are offset by higher material costs and logistics. Here are some interesting things to keep in mind:

• The US unemployment rate of 8.3% stands as a significant barrier towards full economic recovery from the economic downturn of 2007 - 2009;
• The resurgence of US manufacturing added 50,000 new jobs during the month of January;
• As some manufacturers begin transitioning their business processes by onshoring what was previously offshored work, CEO's will be looking to fill approximately 600,000 manufacturing jobs;
• According to The Institute for Supply Management, US factories grew in January at the fastest pace in seven months at a reported index rating of 54.1 (ratings above 50 indicate expansion).

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