“Chesapeake Bay Candle never thought twice about offshoring its manufacturing when the company started 17 years ago…Four years ago, however, the company reversed that thinking, centering its operations domestically, and betting that as the global economy changes, the move will actually save it money.”
This is the developing trend noted by Chris Morris on a special to CNBC. The article, “Re-Shoring: Manufacturers Make a U-Turn” notes the reshoring of companies like Chesapeake Bay Candle, rising wages in China (15 to 20 percent a year), rising fuel costs, recent domestic manufacturing job growth, and global demand for Made in America products are all indicators that there is a change coming that will be very positive to U.S. manufacturing.
One of the benefits of reshoring is in how it makes customization and adaptation faster and more convenient. Companies can hold smaller inventories, save on logistics costs, generate good will, and rapidly implement new innovations and product lines. This allows businesses to stay more relevant, to adapt to an ever changing market, and even have more assurance during recessive periods.
‘”We have some new machinery and new methods that can be more competitive with China,” says Bruce Brandel, president of The Packaging Team, which supplies blister packaging for consumer product goods. “We’re starting to see people who moved to Mexico or China say ‘If you look at the total picture and cost, it’s not much of an advantage — and maybe a disadvantage — to be there’.”’
The full article can be found here.