Recently there has been a great deal of talk about an American manufacturing renaissance. Production is beginning to pick up again, and many companies are bringing manufacturing back to America, which is being termed “reshoring.” Makers of everything from cars, appliances, and even computers, are looking for ways to manufacture their product right here in the U.S., as seen in this CNET article.
This is a great thing to see in American manufacturing, and it is certainly helping to pick up the economy. Specifically, here are a few highlights of this manufacturing renaissance:
- The latest report from AMT shows that U.S. manufacturing technology orders in March not only rose 38.5% from February, but are also up 2.9% from this date last year.
- Orders for durable manufactured goods have been rising; manufacturing posted a 54.9 index last month, according to the Institute for Supply Management.
- It is now only 5% cheaper to make goods in China than in the U.S., according to the LA Times.
For years, outsourcing always came down to cost. For many businesses, it was cheaper to send out production rather than keep it at home. However, this latest study from the Boston Consulting Group highlights how total costs for overseas production have now become much more equal to that of manufacturing in the U.S; to manufacture in America, you are also getting higher quality products and services.
While it is hard to say if this trend will continue, we can certainly see how U.S. manufacturing is on the verge of a renaissance, and we hope to continue to be a part of it!