Rising labor costs and quality concerns have many US companies reevaluating their overseas strategies.
In fact, new research conducted by Cook Associates Executive Search found that a full 85 percent of manufacturing executives see the possibility of certain manufacturing operations returning to the US.
What are the reasons for this potential shift? Survey participants cited:
- overseas costs (37 percent)
- logistics (19 percent)
- other, including economic/political issues, quality and safety concerns, patriotism and overseas skills shortages for highly technical manufacturing processes (36 percent)
The study, which polled nearly 3,000 manufacturing executives primarily in small- to mid-sized US companies from October 13 through November 18, 2011, identified low-volume, high-precision, high-mix operations, automated manufacturing and engineered products requiring technology improvements or innovation as the primary forms of manufacturing returning to the US. (more…)