The Rebirth of U.S. Manufacturing: Myth or Reality?

From Harvard Business Review:

The picture that emerges from this research is less black and white than either the cheerleaders or the naysayers would suggest. Overall, we see a modest improvement in U.S. manufacturing but not a wave of reshoring. More companies are investing in the U.S. or considering it as a location for new manufacturing facilities. But this is essentially a rebalancing after many years in which manufacturing shifted overwhelmingly to lower-cost nations such as China.

Intriguingly, the study also indicates that cost factors are no longer the key consideration for many companies deciding where to locate their manufacturing. The leading factors driving companies to manufacture in the U.S. include a growing desire to locate their manufacturing near their customers so they can respond quickly and efficiently to customer needs and drive growth, while simultaneously de-risking the supply-chain. A corporate strategist for one manufacturer told us: “It’s tough to get the same quality level and cycle time to serve your customers if your supplier networks are far away.” At the same time, these companies are continuing to invest in manufacturing outside the U.S., particularly in emerging markets, for many of the same reasons. So the picture is truly nuanced.

http://blogs.hbr.org/2014/06/the-rebirth-of-u-s-manufacturing-myth-or-reality/