News from Notch Consulting, Inc.

March 12, 2010

WSJ Highlights Onshoring Trend

Filed under: General — Notch @ 11:29 am

From today’s Wall Street Journal, an article suggesting that the manufacturing sector in the US may see a much-needed uptick after being devastated by the recession.

The trend, known as onshoring or reshoring, is gaining momentum as a weak U.S. dollar makes it costlier to import products from overseas. Manufacturers are also counting on White House jobs incentives, as well as their ability to negotiate lower prices from U.S. suppliers who were hurt by the downturn and willing to bargain.

After a decade of rapid globalization, economists say companies are seeing disadvantages of offshore production, including shipping costs, complicated logistics, and quality issues. Political unrest and theft of intellectual property pose additional risks.

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