Bill McMeekin and Emily McMackin, of BusinessClimate.com, released a report entitled “Reshoring
U.S. Manufacturing: A Wave of the Present” that laid out the position of the U.S. and the reshoring trend. Some important key facts and good news for U.S. manufacturing presented in the report were: reshoring could add 2 to 3 million jobs by 2015, major companies have already joined the trend, many more companies are considering reshoring, several factors are pushing out China as a cost advantaged site, and many areas in the U.S. can now potentially be competitive to manufacturing.
Another aspect coming to the attention of overseas manufacturers is the distance between research and development and production facilities. The advantage of having researchers, engineers, and plant managers all in similar time zones is just another reason why reshoring is so attractive to so many.
In short, the authors are showing that the conditions are right for a new surge in American manufacturing, but certain steps need to be taken in order to get there. While some areas of the country are already benefiting from reshoring, others need to take similar action to attract these manufacturers. Communities need to strengthen their workforce, give businesses attractive incentive packages, and create a business-friendly climate. These simple but effective actions, combined with the many other favorable factors, can go a long way to promote the reshoring of manufacturing in a community.
“Policymakers need to understand the dynamics at work – labor costs, energy costs, transportation costs – that are making reshoring an option and position their region to take advantage of the opportunities. The communities that can offer the sweet spot of lower labor costs, attractive business costs, a favorable business environment and a pool of skilled workers will truly ride the reshoring wave the farthest.”
For further details and a closer look at the report, you can find it here.