Is US Inshoring of manufacturing and services a trend ?

An article in CNN Money (http://money.cnn.com/2011/06/17/news/economy/made_in_usa/index.htm?hpt=hp_t2) asks if the examples of companies inshoring i.e., bringing outsourced activities back to the US, is a long term trend. The articles identifies GE’s appliance plan in Kentucky that will produce refrigerators and water heaters, NCR’s decision to produce ATMs in Columbus, GA, and Carbonite’s decision to move their call center to Maine.  The drivers for these decisions vary from a lowering of the labor cost gap, higher turnover in foreign locations, increased shipping costs and the benefits for innovation to co-locate manufacturing and design.   Do these drivers constitute a long term trend and will that lead to increased domestic US manufacturing ? How will the competitive responses of the foreign locations impact this trend ? Finally, are these the type of jobs that will enable continued US competitiveness ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , . Bookmark the permalink.

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