In an article (paywall) in Crain’s Cleveland Business, Harry Moser from the Reshoring Initiative discusses what what one company’s surprising reshoring success experience indicates for others in the manufacturing industry. Rising labor costs in China and higher energy costs are causing many to reconsider their sourcing decisions. With the advantages of shorter supply chains, minimizing disruption, and the benefits design and engineering being proximate to the manufacturing process, many companies are choosing to manufacture their products in the U.S.
Moser states “There’s nothing much simpler to make than a Frisbee and there’s no place in the U.S. more expensive than California or Michigan, so if you can bring Frisbees back from China to California and Michigan, you can bring anything back to Kansas.”
Also, discussed in the article is the multiplier effect that reshored jobs can have. Because manufacturing firms are ubiquitous in the supply chain, a company that makes the decision to reshore can set off a chain reaction to add jobs at shops both up- and down-stream in the production process.