Are Jobs Coming Home?

I found a very interesting survey conducted by the website G+ entitled “Is Onshoring the New Offshoring?”  They surveyed 102 executives who are “…involved in shaping their corporate strategies for offshoring decisions.”  Here is the question they asked: “In the next 6-12 months, are you considering repatriating offshored jobs to the United States?”

The result was that 41% said they were considering doing so. The reasons given for bringing production back to the US were:

  • Rising labor costs – Social unrest plus rising labor costs
  • Supply chain complexities—Chains are getting “over stretched”  
  • Quality and value – QC is lacking and too big a time lag between decision making and production facilities
  • Changing demands—Production moving to smaller quantities and more flexibility are increasingly desirable

The survey does note that offshoring is still most effective place to produce when an industry primarily employs unskilled labor.  Much of the work for the toy industry is indeed done with unskilled labor so though some jobs may be coming home, it would appear that China, at least for the toy industry, will continue to remain attractive at least for a while longer.

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