Published on May 22nd, 2012 | by James Johnson0
Jobs Shipping Overseas Again…From China To America?
American manufacturing plants are beginning to win back contracts from big box businesses as “reshoring” of operations picks up speed. While producing products in China use to be a no-brainer the cost of shipping those products and increasing wages in Asia have made the cost of goods production skyrocket over the last 10 years.
Case in point, an American plan just won back the right to produce Whirlpool’s hand mixers, while that win will only produce about 25 new jobs it showcases the trend of reshoring.
According to one nonprofit campaign that has been following the practice of “reshoring” nearly 25,000 jobs have returned to the United States in the last several years.
According to the Wall Street Journal a survey of 105 companies found that 39% were considering reshoring.
While many goods still remain attractive for Asia’s marketplace some analysts believe the steady trickle of US reshoring will continue as shipping costs increase and the cost of doing business in Asia and other countries continue to rise.