Domestic Manufacturing Makes Sense Again

american madeAccording to a survey by Boston Consulting Group in September, 2013, “More than half of the US-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the US from China …”.  From the viewpoint of these executives, this decision makes good financial sense.

There are 3 main considerations that are driving this movement:

  1. Labor costs:   cited by 43 percent of respondents
  2. Proximity to customers:  cited by 35 percent of respondents
  3. Product quality:  cited by 34 percent of respondents

Other factors include access to skilled labor, transportation costs, supply-chain lead time and ease of doing business.  Especially when considering products that will be sold in the US, when the cost of all of these elements are added together, manufacturing in the US begins to look more appealing as compared to the increasingly costly and complicated nature of importing from China and other off-shore countries.

In addition, while the economics of onshoring makes economic sense for the manufacturer, the social impact of adding factory and related service jobs to the US market must be appreciated as a renaissance for the American workers and consumers alike.  This revival will spark new employee training and re-training of current company associates; facilities improvements; enhanced customer service levels; faster production turn-around; and higher product quality.

Now that domestic manufacturing makes sense again, it will be easier than ever to find affordable USA-made products that can carry your corporate logo.  Consider the possibilities when discussing the next marketing project with your branded merchandise specialist!

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