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Global strategy and management consulting firm A.T. Kearney, Chicago, has released its 2014 Reshoring Index. The change in ratio between U.S. manufacturing imports and gross output is expected to show a year-over-year decline, lower by 20 basis points from 2013, as offshoring to foreign manufacturing markets outpaces reshoring.
“While the so-called reshoring trend has helped improve the mood of U.S. manufacturing since the recession, the reality is that the import value of manufactured goods into the U.S. from 14 low-cost Asian countries has grown at an average of 8% per year in the last five years,” said Pramod Gupta, A.T. Kearney principal and study coauthor.
The top three reshoring industries are electrical equipment, appliance and component manufacturing at 15%, transportation equipment manufacturing at 15% and apparel manufacturing at 12% of the cases in the study.
Improvement in delivery time led the reasons executives gave in favor of reshoring, with quality improvement a close second followed by brand/image.
While there has been an overall lift in U.S. manufacturing for five straight years since 2009, imports of offshored manufactured goods into the U.S. have increased at a faster rate than any return of manufacturing operations to our soil and, for the 14 top offshoring locations combined, amounted to $630 billion in 2013.
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