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Reverse flow of offshoring back to America

Filed in archive Point of view by ehsan on January 22, 2008

I have already written a little about this but reading Hottest Supply Chain Buzzwords list in Industry Week became a motivation for me to pinpoint the issue one more time:

Many manufacturers in U.S. are currently shifting their sourcing base from Asia to the Americas. The falling U.S. dollar, limited free trade agreements, high energy costs, and rising production costs in Asia are some of the factors which according to David Blanchard, SCM expert, contribute to companies reevaluating their supply chains.

The new conclusion is: Move the sources closer to their home markets (obviously U.S. is the biggest market for many products).

Apart from the reasons mentioned above, the recent quality issue in China have acted as an accelerator for this shift. While Asia is still popular, Mexico is becoming an increasingly popular source for manufactured goods as companies compete on time-to-market strategies links

Permalink: Reverse flow of offshoring back to America
Tags: china india offshoring scm supply chain management 2007 supply+chain

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/111401

The distribution of power in outsourcing era is changing - 21 May 2007

Outsourcing to Latin America: Beware of the value chain... - 28 May 2007

China an Offshoring Destination - 18 July 2007

China to encroach on India's offshoring turf? - 22 May 2008

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Response from: no image Josh Breinlinger (Check me out!)

Good insights on this 'reverse flow' trend. I run the blog over at oDesk and published some statistics on global hiring rates in US, India, Russia, and Philippines. You can see the data at http://www.odesk.com/blog.
Cheers,
-Josh

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Response from: no image Arthur (Check me out!)

Good to see people are starting to talk about it. I think that those that are just starting to head to China already missed the boat. For some of them, the motto seems to be "Buy Low Cost Country - No matter what it costs!" There may still be opportunities for saving out of LCC's - but a company should better have a good "reverse plan" in place. In addition to the factors mentioned above, at most 5-8 years from now governments are going to get really serious about global warming and doing something about it (till now they've only generated hot air). And consumers may ask what is a product's CO2 footprint - not just production and distribution, but the entire supply chain.

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Reverse flow of offshoring back to America

Filed in archive Point of view by ehsan on January 22, 2008

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