U.S. is Now Preferred Location for New Factory Capacity to Serve Domestic Market
Of manufacturers planning to add production capacity over the next five years for goods consumed in the U.S., more plan to add that capacity in the U.S. than in any other country, a sharp reversal since as recently as two years ago. A rising percentage of U.S.-based manufacturing executives say they are already in the process of reshoring production work from China, according to The Boston Consulting Group’s (BCG) fourth annual survey of senior U.S.-based manufacturing executives at companies with at least $1 billion in annual revenues. This year’s survey elicited 263 responses from individuals who work for companies that manufacture in the U.S. and overseas and make products for both U.S. and non-U.S. consumption.
31% of respondents said that their companies are most likely to add production capacity in the U.S. within five years for goods sold in the U.S., while 20% said they are most likely to add capacity in China. Asked the same question in 2013, 30% of respondents said that China was the most likely destination for new capacity devoted to serving the U.S. market, while only 26% said capacity would be added in the U.S.