Survey: Operations returning to U.S. shores
January 16, 2012 by Alex IrwinPosted in: Finance, In this week's e-newsletter, Labor/HR, Latest News & Views, News
A large majority of executives in the manufacturing industry plan to bring elements of outsourced operations back to the United States, according to a recent survey.
Eighty-five percent of manufacturing executives said they see the possibility that some business elements that they shipped overseas in years past will return to U.S. facilities, according to a survey by Cook Associates Executive Search.
Why would the executives bring operations back to the U.S.?
- rising costs overseas (37%)
- logistics (19%), and
- various other reasons – economic/political issues, quality and safety concerns, patriotism and overseas skills shortages (36%).
Survey authors said rising wages overseas, especially in China, are causing manufacturers to rethink outsourcing strategies. But the jobs returning to the U.S. aren’t likely to be line workers and unskilled laborers, authors say.
Instead, U.S. manufacturers are bringing skilled positions in specific departments — engineering, product development and finance.
The survey included nearly 3,000 C-level manufacturing execs at primarily small- and mid-sized companies.
Tags: China, Cook Associates, engineering, overseas, Supply chain