More good news for the manufacturing industry? ASSEMBLY Magazine recently concluded the studies for its17th annual State of the Profession survey, capturing current trends in the industry and making some projections about the future. At the top of the list of topics? Reshoring efforts — and the lack of skilled workers to fill jobs.
Reshoring Buoys Optimism
by Austin Weber
The 17th annual ASSEMBLY State of the Profession survey captured some of the recent uptick in reshoring activity. For instance, 19 percent of respondents claim that their company has brought jobs back to the states from overseas. And, 16 percent expect their companies to reshore assembly operations during the next 12 months.
A recent study conducted by the Boston Consulting Group Inc. (BCG) confirms this trend. According to BCG, more than a third of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the United States from China or are considering it.
The top factors cited as driving future decisions on production locations are labor costs (57 percent), product quality (41 percent), ease of doing business (29 percent) and proximity to customers (28 percent). In addition, 92 percent of respondents believe that labor costs in China “will continue to escalate,” and 70 percent claim that “sourcing in China is more costly than it looks on paper.”
Check out the full article at ASSEMBLY’s website. The article goes on to discuss working conditions, job satisfaction, pay distribution, and green initiatives. What trends from ASSEMBLY’s survey do you see reflected in your own company and your sphere of business?