Manufacturing – what’s going on here ?

Over on Manufacturing.net Michael Collins discusses off-shoring and in-shoring:

http://www.manufacturing.net/Articles-What-Is-Going-On-Here.aspx

"From 1994 to 2004, U.S. companies invested more than $48 billion in China, exported $200 billion in goods to China, and imported a staggering $1 trillion from China. Although China is the most popular source, South America, Mexico, India, Canada, Russia, and the Eastern European countries are all increasing their exports to the U.S.

American companies see sourcing from foreign countries as a good solution for lowering their costs.

On the other hand, foreign companies have invested $40 billion in assets in the U.S. and now employ 6 million workers. This is called “in-shoring.”

. . .

Foreign manufacturers have learned that the best reason to inshore or build plants in the United States is to be close to their customers and the markets. They can avoid all of the problems of shipping products into America, plus they can monitor the customer’s wants and needs. Market proximity is a big advantage and everyone seems to have figured that out but American manufacturers.

If other countries are so successful at building plants in North America and have proved that they can do it with our employees, taxes regulations, and suppliers, why can’t American manufacturers do the same thing?"

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