Posted on 10/23/2014 5:41:10 AM PDT by rjbemsha
Large manufacturers are increasingly moving production back to the United States from China, according to a new report by The Boston Consulting Group.
After watching the US bleed jobs for years as manufacturers offshored production to China, "now we're watching a switchback," Harold Sirkin, a co-author of the BCG research, told AFP.
More than 70 percent cited better access to skilled labor as a reason to move production to the US, more than four times as many who cited it for moving production away from the US.
For goods that would be sold in the US, nearly 80 percent gave shorter supply chains and reduced shipping costs as a motive for reshoring.
Cutbacks in China were projected to be sharp, down to 11 percent of total production capacity, a decrease of 21 percent from the 2013 survey.
(Excerpt) Read more at sg.news.yahoo.com ...
A lot of big corporate management is skilled in lying, manipulating, and playing politics. When it comes to actual leadership, they are lemmings who follow trends.
There’s also the desire to reduce having your company’s intellectual property and trade secrets stolen, and seeing cheap knockoffs/counterfeits of your product appearing shortly after starting Chinese manufacture of it.
Step 1: Say BRING BACK AMERICAN BUSINESSES.
Step 2: See Step 1.
I wouldn’t doubt high shipping costs are a big part of this. Most everything moves by truck here, and products probably won’t get cheaper by a fraction even if transport costs drop. Like temporary taxes that never go away,
Nope just finances - wages are up in China, partially due to imposed increases, and logistics have also seen an increase. Payback has been falling for about 10 years and now has started to swing the other way.
India isn’t in quite the same situation - but they have other issues ranging from availability of certain commodities at reasonable prices to infrastructure delays, etc.
If things become unstable in China they could go Venezuela in a heartbeat and start expropriating all of their plants.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.