Five key factors driving reshoring
At the annual MFG Meeting in Phoenix, John Walker, chairman of Oxford Economics, cited the five reasons reshoring is taking hold in the U.S.
The issue of reshoring manufacturing, and by extension, manufacturing jobs, was seen at one time as a matter of patriotism. The economic and logistical issues have easily overtaken any other factor as the reason manufacturing jobs are migrating back to the U.S.
Here are five key factors driving reshoring according to Walker:
- It reduces the time to market.
- It reduces costs.
- There is better product quality.
- There is more managerial control.
- There is easier supply-chain management.
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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey