As a key competitive strategy we constantly struggle against in our industry, offshoring has been a largely debated topic in years past. While it is true that offshoring was and, in some part still remains, a competitive option for those in need of services brought about by American manufacturers, this option has grown to have more cons than pros. As a whole, what was once considered to be an increasingly cost effective option, has now been forecasted to reflect the exact opposite. Because of increased foreign investment over the years, wages for workers around the world have increased as a result. According to a recent study, several economies traditionally regarded as low-cost manufacturing bases (i.e. China, Brazil, etc.) have seen their cost advantages erode significantly since 2004 while US Manufacturing has considerably improved its cost structure. This is good news for national economic supporters as reshoring is starting to be brought back on the table again as a business strategy.
The below infographic, put together with research compiled by West Monroe, debates both options. More specifically, it details why reshoring is starting to become a significant keyword in the playbooks of modern American companies.