Made-in-the-USA seems to be gathering new momentum, as a new survey shows that a majority of manufacturing executives say they're ready to consider pulling some production back from China and other global locations. In fact, Boston Consulting Group said its survey found most large U.S. companies now plan to move some production to America from China, or are "actively considering" the move.
Also, the survey found that the number of firms that have shifted manufacturing to the U.S. from China, or will do so in the next two years, has nearly doubled over the past 18 months. And, Boston Consulting Group identified three main drivers of the trend: increasingly favorable domestic labor costs, product quality, and a desire to be closer to customers.
"We've looked at the economics of onshoring and moving production back to the United States, and it definitely makes sense for us," said Eric Hyde, senior vice president of supplier firm Goldstar (asi/73295), which recently moved some of its production from Mexico to Tennessee. "We can offer the same prices on our products that are now produced and imprinted in Tennessee, but with 24 hour delivery service, as opposed to the average of five days from our plant in Mexico."
Hyde said that the company has added jobs and re-trained employees in its Tennessee facility so that the company can quickly fulfill orders for its laser-engraved metal products in the United States. "We're committed to U.S.-based production and we'll be expanding our move back to the United States, but we've also done this for service reasons," Hyde said. "We can simply offer quicker turnaround – for the same price as before – and our customers benefit from the central location in Tennessee now."