Experts think reshoring is not yet a trend

Posted by LDonia on 07/06/2012

"The next president of the United States, whoever he is, will end his term with fewer Americans working in manufacturing than he inherited.”

Writing for Bloomberg Businessweek, David J. Lynch quotes (above) a prediction from London School of Economics professor Tim Leunig.

wrenchIt’s impossible to know if this prediction will come true, but competing pieces of data make one thing certain – where reshoring is concerned there is no certainty.

Earlier this year, President Obama cited instances of jobs returning to the United States, including manufacturing positions at General Electric and Caterpillar. The President also mentioned, as we at ManufactureThis have, something that a Boston Consulting Group survey indicated:

"37 percent of manufacturers with sales of more than $1 billion and almost half of those with more than $10 billion ‘plan to or are actively considering bringing back production from China to the U.S.’”

While this all sounds like good news, Lynch thinks we should step back and take a look at the bigger picture.

He suggests that for every company that brings jobs back to the United States, there’s a company shipping its jobs away. It’s this insight, coupled with the fact that some American companies are pulling jobs out of China only to send them to other foreign countries that leads people like Professor Leunig to make predictions like the one above.

Read more here.

Photo taken by flickr user joguldi and used with Creative Commons license.

2 comments

Anonymous wrote 2 years 6 weeks ago

State of US Manufacturing

Interesting article. There's a annual report on the State of Manufacturing on McGladrey website " http://bit.ly/IzVhuU " that readers may be interested. It offers insights and opinions of over 900 manufacturing executives.

Anonymous wrote 2 years 6 weeks ago

Experts think reshoring is not a trend

I would agree with this article and this will not change until the American voters get involved and demand it be changed. There is no incentive for most politicians to change their ways or make waves. We have become a nation of salespeople, and sooner or later that will bite us and we won't be able to recover. Some nations protect a portion of their base; Germany for instance. They are still known to produce quality industrial products and they keep a portion of their workers in tool design, creation, etc. employed so they do not lose these skills. See my website: http://ants-status.com/, for a project that will go a long way to get our manufacturing industry back on track. Keith

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