Manufacturers, are you ready if there's a resurgence in U.S-based manufacturing?
Oct 18, 2011
The authors of the article, "Made in America, again: why manufacturing will return to the U.S.," contend that within five years several factors, including rising Chinese wages, higher U.S. productivity and a weaker U.S. dollar, will make it just as economical to manufacture goods in some parts of the U.S. as China.
This news is certainly welcome after years of China being the default option as an export platform for the North American market. While it's uncertain whether a resurgence in U.S.-based manufacturing will occur, it is smart to position your company to take advantage of a positive shift in the market.
What should manufacturers do to prepare for a shift?
Look closely at your total costs. Study your supply chain management. Conduct a product-by-product analysis of your global supply networks. Use your product costing system to analyze what it costs to manufacture each product. Consider your inventory control and management. It's never been a better time to get your financial house in order.
View the article, published by The Boston Consulting Group.
Email