31 May '12, 11am

Cost Analysis: #Reshoring Is Viable | #SupplyChain #manufacturing

A recent report on manufacturing site selection contains both good news and bad news for the US. First, the good news. According to the report, "Reshoring Global Manufacturing: Myths and Realities ," by the Hackett Group, the cost gap between manufacturing in China and production in the US is narrowing. By 2013, says the report, the total landed cost of manufacturing in China will be only 16 percent lower than that of the US. This margin, analysts believe, represents the "tipping point" where manufacturers consider reshoring as a viable option. Now, the bad news. The study also finds that companies are pursuing sites in other developing nations as a low-cost alternative to China. China has been a handy scapegoat in the debate about US jobs moving offshore. According to the Hackett Group, jobs will still remain offshore -- just not in China: Countries including India, Thail...

Full article: http://www.ebnonline.com/author.asp?section_id=1071&doc_i...

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