Are you packing up your operations in China and moving to another low-cost country or reshoring back to the U.S.? Many companies are rethinking their global manufacturing strategy in light of the global pandemic and recognizing supply chain vulnerabilities. Reshoring is the hottest topic on executive agendas and in board rooms across the U.S.
Approximately 13.5 million Americans are employed in the manufacturing industry. This represents 8.5% of all US jobs, and 11% of total US GDP. Although women make up nearly half of the working population, at present, women hold just 29% of manufacturing jobs in the U.S. According to the Manufacturing Institute’s data collection, a gender diverse workforce can help a manufacturing company drive profit and get a higher return on equity. Adding more females to the industry can bring about more innovation and creativity as well as more varied perspective.
There is mounting pressure towards building an industrial policy in the United States. With increasing concerns over the COVID-19 pandemic and following economic repercussions, economic experts are urging discussions on curating such policy. This paper will touch upon how industrial policy has been enacted worldwide, the partisan debate over such policy, and overall, how industrial policy can soothe current-day challenges and lead the US towards a better overall manufacturing mindset.
The reshoring of manufacturing is a tangible method for accomplishing sustainability. It encourages firms to consider the long-term implications within their industry through consistent environmental stewardship. By keeping manufacturing onshore we can better understand how to shift away from inefficiencies and environmental degradation.
The hottest trend in US manufacturing is Reshoring. According to a recent study by Boston Consulting Group, 54% of all US companies over $1 billion in revenues are planning or considering bringing at least some of their manufacturing back to the US. But just how attractive is it to leave China? This decision isn’t an easy one.
Policymakers and academics are increasingly aware of the reshoring/backshoring of once offshore manufacturing capacities, the current debate in the US and Europe is whether restoring activities help restore industrial competitiveness in high-wage countries.
This white paper details how changing markets and economies are making American manufacturing more attractive, what Walmart is offering to businesses looking to move operations back to the US or to those who are currently producing here, and case studies of corporations which have successfully reshored and sell through Walmart.
This white paper details the public relations benefits of telling your reshoring story, with examples of companies that have successfully reshored and the shifting perceptions of the American consumer in terms of American manufacturing and jobs creation.
Donald Trump may have won the U.S. Presidential election on the theme of “jobs, jobs, jobs,” but his actions and policies are not going to create or bring back many new jobs for Americans. The reality is very different from the rhetoric.
Manufacturers have seen wage rates in Shanghai jump over 76% between 2010 and 2013 with similar rates of increase in supporting industries like transportation and logistics. Chinese government statistics would suggest that this trend will continue.