We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Offshoring and reshoring—what's really going on?
Forward Thinking

Offshoring and reshoring—what's really going on?

September 19, 2014
Supply Chain Quarterly Staff
No Comments

Every day, more U.S. manufacturers consider moving a plant back to the United States or to a nearby country, or expanding operations in the U.S. The idea that the United States can be globally competitive as a manufacturer appeals to most people, but it is difficult to sort out what's really going on, and why.

To help supply chain leaders gain an understanding of some of the trends related to reshoring—bringing production back to the United States or relocating it to different geographical locations—the Council of Supply Chain Management Professionals (CSCMP) has published a new book, Best Practices in Offshoring and Reshoring. The book, based on a study conducted by academic researchers, examines the key factors affecting companies' manufacturing location decisions: how the importance of these factors has changed, and how important they will be the future; what the perceived risk associated with these factors is; and what the perceived trends related to manufacturing location are in specific industries. The study results, organized by industry, are provided in a series of supplementary online appendices.

The study examined the factors that influence manufacturing location decisions for 319 companies that currently do some manufacturing offshore. Forty percent perceived a trend toward reshoring in their industries. That trend appears to be strongest in the aerospace and defense, industrial parts and equipment, electronics, and medical and surgical supplies industries.

From a logistics perspective, the key findings included that more than 60 percent of respondents said that the stability of transportation costs would become more important in their location choices in the next three years. Transportation availability and reliability as well as the availability of knowledgeable logistics service providers also are expected to become more important. The relative importance of these factors varies by industry.

In making the manufacturing location decision, the companies in this study also place increasing importance on where their customers want them to locate, as well as how a location could help them expand into new markets. Competitors' location choices are also an increasingly important factor in the manufacturing location decision.

The research further revealed that companies are reexamining their manufacturing location decisions in an effort to go beyond cost and are considering risk combined with a total cost perspective. While the respondents indicated that the cost of moving to a different location was an important consideration in choosing a location, they are approaching that decision with a longer time horizon.

For more information about Best Practices in Offshoring and Reshoring, including how to order, click here.

  • Related Articles

    Study: "Reshoring" trend gains strength

    "Reshoring"—the next supply chain trend?

    Survey: 70% of U.S. businesses eye reshoring and nearshoring plans

Recent Articles by Supply Chain Quarterly Staff

Energy price swings pressure businesses to change their spending priorities

Maersk’s VC arm backs inventory drone startup Verity with $32 million

Survey: most Americans unaware that truckers face shortage of parking spaces

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Postal Service plans to seize items mailed with fake stamps

  • Supply chain executives not yet seeing expected results from technology investments

  • Inflation drops again as interest rate hikes hit home, NRF says

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing