Easier said than done: That pretty well describes the task of shifting manufacturing out of China and back to the United States. Still, a number of producers are considering it. From the standpoint of total cost, China is no longer the overwhelming choice of a source for cheap manufacturing. For one thing, factory wages there are rising. For another, companies are coming to understand the risks that accompany a strategy that sites production so far from end markets. Now, the coronavirus pandemic has provided brands and manufacturers with a reason to speed up their decision to leave China, or at least reduce their exposure there. On this episode, we weigh the risks and benefits of a shift in sourcing, with the help of Jason Maynard, senior vice president of global field operations with Oracle NetSuite . We ask: Does the United States offer a realistic alternative to China? What are the pros and cons of reshoring production? Should manufacturers seriously be considering it? Hosted by Bob Bowman, Editor-in-Chief of SupplyChainBrain.
Show notes: A blog post from the MIT Sloan School of Management: “Reshoring, Restructuring, and the Future of Supply Chains.”