Friday, December 11, 2015

Reshoring Gaining Strength Among Large Manufacturers, BCG Survey Finds

"Striking" is the way it was put.

“The fundamental economic forces that are prompting many companies to reassess their global manufacturing footprint have not changed,” explained Michael Zinser, a BCG senior partner and coleader of the firm’s global manufacturing practice. “Given the big differences in wage growth and productivity—and the greater attention companies are paying to total cost—there is good reason to believe that the cost-competitiveness of the U.S. compared with China and many other major export economies will continue to improve in the near term.”

Advanced manufacturing technologies such as robotics, whose costs are shrinking as their capabilities increase, are helping to make the U.S. more attractive for investment. Fifty-six percent of respondents said that lower automation costs have improved the competitiveness of U.S.-made products compared with similar goods sourced from low-cost countries. Moreover, 71% said advanced manufacturing technologies will improve the economics of local production, and 75% said they will invest in additional automation or advanced manufacturing technologies in the next five years.
Yes, this isn't a complete "win".  Automation is the real winner, not the regular joe-blow worker.  Several years ago I mentioned that all the jobs that were lost in the 90s and early 2000s would not come back even of all the companies that left came back.  It was because of automation.

But, better the build the plants with automation here than build the automated plants there.

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