Manufacturing companies cannot afford to ignore the reshoring movement to bring production back to the U.S. from leading Asian, European and South American countries. But before spending valuable dollars to relocate production facilities, conducting a comprehensive cost-analysis of overall benefits, as well as company-focused advantages and disadvantages for every aspect of production, is a crucial part of the process.
An estimated 40 percent of manufacturing companies in high-quality, technology-driven industry sectors like aerospace and defense have already relocated manufacturing assets to the United States, citing lower labor and energy costs as driving forces. As more manufacturers follow suit, this surge in U.S. manufactured exports and jobs created as a direct result of reshoring is expected to create between 2.5 million and 5 million additional American jobs in factories and related services by the end of the decade, according to a recent study by The Boston Consulting Group (BCG).
The United States is projected to have an export cost advantage of 5 percent to 25 percent over Germany, Italy, France, the United Kingdom and Japan by as early as 2015, according to the report. This advantage would translate into as much as $90 billion in additional U.S. exports per year, and a total of $130 billion in annual gains when factoring in exports to the rest of the world, the analysis says...
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