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Reverse flow of offshoring back to America

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

offshoring-flow.bmp
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 strategieslinks.







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

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