Home | Growth | Are Manufacturing Jobs Really Returning to the U.S.?

Are Manufacturing Jobs Really Returning to the U.S.?

By
Font size: Decrease font Enlarge font
Are Manufacturing Jobs Really Returning to the U.S.?

Few subjects are as important - or as controversial - as whether there is a return to the U.S. of manufacturing jobs from China and other offshore markets (and that jobs are staying here in the first place).

It’s a controversial subject that, for one thing, politicians like to talk about and take credit for. CEO Tim Cook was in the gallery of the Congress for the State of the Union address last January, when President Obama hailed Apple’s then-recent decision to situate (at least a little more of) of its manufacturing/assembly in the U.S.

Reshoring: Is It real?

First, is this trend actually true? It depends on who you are listening to. A recent Boston Consulting Group (BCG) study suggests that, after decades of decline during which U.S. manufacturing has been “hollowed out,” we are regaining some advantage. The flexibility- and innovation-powered U.S. factory sector, enjoying the long-term prospect of cheaper energy and relatively lower wages, stands to lay claim to up to $115 billion more in export business from rivals by 2020, the BCG report says. The report predicts that within six years production will capture $70 billion to $115 billion in annual exports that would have previously gone to our main competitors. The study says that with wages rising in China, the shift could add from 2.5 to 5 million American jobs.

I hear anecdotal evidence from my peers in consumer products companies that some of the “reshoring” that BCG describes may be happening. But not everyone agrees. Tompkins International, a leading supply chain consulting firm, says that the reshoring trend is overstated, citing the still very large gap between Chinese and American labor costs and the fact that many American workers have come to find manufacturing jobs unappealing.

Read more...

It’s a controversial subject that, for one thing, politicians like to talk about and take credit for. CEO Tim Cook was in the gallery of the Congress for the State of the Union address last January, when President Obama hailed Apple’s then-recent decision to situate (at least a little more of) of its manufacturing/assembly in the U.S.

Reshoring: Is It real?

First, is this trend actually true? It depends on who you are listening to. A recent Boston Consulting Group (BCG) study suggests that, after decades of decline during which U.S. manufacturing has been “hollowed out,” we are regaining some advantage. The flexibility- and innovation-powered U.S. factory sector, enjoying the long-term prospect of cheaper energy and relatively lower wages, stands to lay claim to up to $115 billion more in export business from rivals by 2020, the BCG report says. The report predicts that within six years production will capture $70 billion to $115 billion in annual exports that would have previously gone to our main competitors. The study says that with wages rising in China, the shift could add from 2.5 to 5 million American jobs.

I hear anecdotal evidence from my peers in consumer products companies that some of the “reshoring” that BCG describes may be happening. But not everyone agrees. Tompkins International, a leading supply chain consulting firm, says that the reshoring trend is overstated, citing the still very large gap between Chinese and American labor costs and the fact that many American workers have come to find manufacturing jobs unappealing.

- See more at: http://newportboardgroup.com/no-mans-land-blog/bid/186122/are-manufacturing-jobs-really-returning-to-the-us?source=Blog_Email_%5BAre%20Manufacturing%20Jo%5D#sthash.EkEEhKrV.dpuf

It’s a controversial subject that, for one thing, politicians like to talk about and take credit for. CEO Tim Cook was in the gallery of the Congress for the State of the Union address last January, when President Obama hailed Apple’s then-recent decision to situate (at least a little more of) of its manufacturing/assembly in the U.S.

Reshoring: Is It real?

First, is this trend actually true? It depends on who you are listening to. A recent Boston Consulting Group (BCG) study suggests that, after decades of decline during which U.S. manufacturing has been “hollowed out,” we are regaining some advantage. The flexibility- and innovation-powered U.S. factory sector, enjoying the long-term prospect of cheaper energy and relatively lower wages, stands to lay claim to up to $115 billion more in export business from rivals by 2020, the BCG report says. The report predicts that within six years production will capture $70 billion to $115 billion in annual exports that would have previously gone to our main competitors. The study says that with wages rising in China, the shift could add from 2.5 to 5 million American jobs.

I hear anecdotal evidence from my peers in consumer products companies that some of the “reshoring” that BCG describes may be happening. But not everyone agrees. Tompkins International, a leading supply chain consulting firm, says that the reshoring trend is overstated, citing the still very large gap between Chinese and American labor costs and the fact that many American workers have come to find manufacturing jobs unappealing.

- See more at: http://newportboardgroup.com/no-mans-land-blog/bid/186122/are-manufacturing-jobs-really-returning-to-the-us?source=Blog_Email_%5BAre%20Manufacturing%20Jo%5D#sthash.EkEEhKrV.dpuf

It’s a controversial subject that, for one thing, politicians like to talk about and take credit for. CEO Tim Cook was in the gallery of the Congress for the State of the Union address last January, when President Obama hailed Apple’s then-recent decision to situate (at least a little more of) of its manufacturing/assembly in the U.S.

Reshoring: Is It real?

First, is this trend actually true? It depends on who you are listening to. A recent Boston Consulting Group (BCG) study suggests that, after decades of decline during which U.S. manufacturing has been “hollowed out,” we are regaining some advantage. The flexibility- and innovation-powered U.S. factory sector, enjoying the long-term prospect of cheaper energy and relatively lower wages, stands to lay claim to up to $115 billion more in export business from rivals by 2020, the BCG report says. The report predicts that within six years production will capture $70 billion to $115 billion in annual exports that would have previously gone to our main competitors. The study says that with wages rising in China, the shift could add from 2.5 to 5 million American jobs.

I hear anecdotal evidence from my peers in consumer products companies that some of the “reshoring” that BCG describes may be happening. But not everyone agrees. Tompkins International, a leading supply chain consulting firm, says that the reshoring trend is overstated, citing the still very large gap between Chinese and American labor costs and the fact that many American workers have come to find manufacturing jobs unappealing.

- See more at: http://newportboardgroup.com/no-mans-land-blog/bid/186122/are-manufacturing-jobs-really-returning-to-the-us?source=Blog_Email_%5BAre%20Manufacturing%20Jo%5D#sthash.EkEEhKrV.dpuf

It’s a controversial subject that, for one thing, politicians like to talk about and take credit for. CEO Tim Cook was in the gallery of the Congress for the State of the Union address last January, when President Obama hailed Apple’s then-recent decision to situate (at least a little more of) of its manufacturing/assembly in the U.S.

Reshoring: Is It real?

First, is this trend actually true? It depends on who you are listening to. A recent Boston Consulting Group (BCG) study suggests that, after decades of decline during which U.S. manufacturing has been “hollowed out,” we are regaining some advantage. The flexibility- and innovation-powered U.S. factory sector, enjoying the long-term prospect of cheaper energy and relatively lower wages, stands to lay claim to up to $115 billion more in export business from rivals by 2020, the BCG report says. The report predicts that within six years production will capture $70 billion to $115 billion in annual exports that would have previously gone to our main competitors. The study says that with wages rising in China, the shift could add from 2.5 to 5 million American jobs.

I hear anecdotal evidence from my peers in consumer products companies that some of the “reshoring” that BCG describes may be happening. But not everyone agrees. Tompkins International, a leading supply chain consulting firm, says that the reshoring trend is overstated, citing the still very large gap between Chinese and American labor costs and the fact that many American workers have come to find manufacturing jobs unappealing.

- See more at: http://newportboardgroup.com/no-mans-land-blog/bid/186122/are-manufacturing-jobs-really-returning-to-the-us?source=Blog_Email_%5BAre%20Manufacturing%20Jo%5D#sthash.EkEEhKrV.dpuf
Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha