The following reshoring facts have been highlighted in order to provide some general insight about the US manufacturing industry as a whole. However, we do have additional research that can help in specific areas and are always willing to work together in order to identify those reshoring facts that may be important to your company or industry. Please let us know if you would like to partner for additional reshoring research.

  • According to a 2014 survey by the Japan External Trade Organization, the total annual cost of a Chinese manufacturing worker (including salary, benefits, social security payments and bonuses) is $8,204, compared to $4,481 in Indonesia, $3,618 in India, $2,989 in Vietnam, and $1,580 in Bangladesh.
  • According to Walmart, the average customer makes a buying decisions in seven seconds. There is a need for very clear “Made In America” labeling.
  • About 10% of all manufacturing functions are automated, a share that will rise to nearly 25% in a decade as robotic vision sensors and gripping systems improve, BCG says
  • PwC’s Q3 2014 Manufacturing Barometer indicates 52% of U.S. manufacturers plan to add employees to their workforces in 2015. More than 30% of those said the most sought-after workers are skilled laborers
  • Current average wage in the greater Shanghai-Yangtze River Delta is $5/hour, up from $.82/hr in 2001
  • According to Boston Consulting, 16% of American Manufacturing executives say they are bringing production back home from China
  • Between 2000-2011, on average, 17 manufacturers per day shutdown in America
  • Walmart has pledged $250 billion over the next 10 years to suppliers that produce their products in America
  • Energy cost and usage is very important but in most manufacturing processes energy cost is far lower than labor cost.
  • 10 percent to 30 percent of the goods imported from China in key industries, including machining, could shift back to the U.S. by 2020
  • Manufacturers in the United States are the most productive in the world, far surpassing the worker productivity of any other major manufacturing economy, leading to higher wages and living standards.
  • Less than one tenth of Americans are employed in the manufacturing sector, down from 25% after WWII
  • For every $1.00 spent in manufacturing, another $1.32 is added to the economy, the highest multiplier effect of any economic sector.
  • 52% of US Manufacturers with annual sales greater than $1Billion say they are considering Reshoring
  • Higher oil prices raising international freight costs make manufacturing costs in the US more favorable
  • Corporate ‘Economic Patriotism’
  • The US Represents 8-9% of the world’s production; China’s manufacturing represents 35-40% of the world’s production
  • Introduction of new technologies such as robotics and 3D printing and 5-axis milling is driving down production costs
  • Mood of America has shifted from a desire to buy the least expensive goods to goods made in America
  • Incentives offered by governments can make the difference when comparing costs
  • Rise in Chinese wages at about 15-18% per year for the last 13 years, and an annual energy cost increase of 5-10%
  • Lower natural gas prices are reducing U.S. chemical and energy costs
  • New reshoring is now balancing new offshoring at about 40,000 manufacturing jobs/year, resulting in the first neutral year of job loss/gain in the last 20
  • The US is not going back to 1960s manufacturing
  • To be cost effective, Reshoring must include automation
  • China’s middle class is expected to include 630 million people by 2022. It is likely to be your largest target market
  • Even though operating costs are rising in China, they are still relatively low compared with other developed economies

Additional Reshoring Facts to help make beneficial decisions regarding actions to take to improve US Manufacturing with a focus on personal actions and how to reframe the conversation.

  • Even though operating costs are rising in China, they are still relatively low compared with other developed economies
  • Buy ‘Made in USA’ products – vote with your dollars
  • Ask retailers to stock American-made products
  • Support STEM skills and programs in elementary schools, high schools, colleges and universities
  • Change the way you talk about manufacturing – today it is a well-paid profession and often in a clean, high-tech environment
  • If you own stock in companies, tell the Board and Executives you want them to Reshore

As mentioned above, we are here to help businesses, organizations, and other groups by providing reshoring facts through quality research and then display those reshoring facts in visually appealing ways that can also be found here in the form of inforgraphics, whitepapers, and other desired presentation.

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