Adhesives & Sealants Headlines / News / Market Trends

Majority of Manufacturers Planning or Considering Reshoring from China to U.S.

October 1, 2013

More than half of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the U.S. from China or are actively considering it, according to a new survey by The Boston Consulting Group (BCG). The share of executives who are planning (or considering) to “reshore” rose to 54%, compared with 37% of executives who responded to a similar BCG survey in February 2012.

The new survey elicited responses from more than 200 decision makers at companies across a broad range of industries. Virtually all of the companies manufacture in the U.S. and overseas, and make products for both U.S. and non-U.S. consumption.

The survey also reportedly found a sharp increase in the percentage of executives who are actively engaged in the process of shifting production to the U.S. When asked whether they expect to move production in light of rising wages in China, 21% of respondents—around twice as many as in 2012—said they are “actively doing this” or that they “will move production to the U.S. in the next two years.”

The top three factors cited as driving future decisions on production locations were labor costs (cited by 43% of respondents), proximity to customers (35%) and product quality (34%). More than 80% of respondents cited at least one of these reasons as a key factor. Other leading factors include access to skilled labor, transportation costs, supply-chain lead time, and ease of doing business. 

For more information, visit www.bcg.com.

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