After years of clawing-back, American manufacturers are celebrating the close of 2013 as reshoring finally hit the main stream.
2013 marked a pivotal year for reshoring as more companies returned their manufacturing efforts to the United States. According to Manufacturing.net, the ability to reshore has become a real possibility for more companies as a number of global macroeconomic factors tip in favor of US manufacturing, such as international:
- Appreciation of currencies
- Labor rate inflation
- Concerns about supply interruption
- Lower product quality
These factors, plus the addition of 500,000 American manufacturing jobs since February 2010, have proved that investing locally can be profitable. In fact, this year companies like Wal-Mart, Element Electronics Corp, and Hampton Products International announced commitments to invest in US manufacturing which will grow local labor forces, expand new plants, and encourage the development of new products.
Although much progress has been made, the fight is not over. American manufacturing faces a number of barriers that inhibit the widespread adoption of reshoring. High equipment investment costs and aging workforce are among the industry’s hurdles. But, as we have experienced firsthand, no hurdle is too great for US manufacturing to overcome.