Onshoring impact

Onshoring is a term used to describe the movement of offshore manufacturing back to the good old USA. Apple Inc. recently said it would move manufacturing of some of its MACs from China to the US, and small companies everywhere are making similar decisions.

 This is happening because the wages in China are moving up making it less attractive than it once was. The cost of transportation is also increasing as world fuel prices go up.

Some say manufacturing in the US is more attractive than it has been over the last 20 years.

Now, what will this mean for your business? Will you be able to reduce costs by purchasing products made in America? If you are an offshore manufacturer, maybe it is time to reassess. Maybe shipment times will go down allowing you to reduce inventories.

What do you think?

 

Steve Koenig, SCORE Counselor

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