Subscribe to our free, weekly email newsletter!



Good news for U.S. logistics providers

According to published reports, many large companies have made public plans to reshore portions of their manufacturing to the U.S. over the past two years, including Caterpillar, Nissan, NCR, Yamaha, Ford, and Electrolux. Earlier this year, both Boeing and GE said they were committed to moving parts of their offshore manufacturing capabilities back to the U.S.
By Patrick Burnson, Executive Editor
May 29, 2012

As noted in today’s news, a recent study issued by The Hackett Group found that the shrinking total landed cost gap could create a tipping point resulting in an acceleration of reshoring. This should resonate well with the nation’s logistics providers.

According to published reports, many large companies have made public plans to reshore portions of their manufacturing to the U.S. over the past two years, including Caterpillar, Nissan, NCR, Yamaha, Ford, and Electrolux. Earlier this year, both Boeing and GE said they were committed to moving parts of their offshore manufacturing capabilities back to the U.S.

Another significant finding from The Hackett Group study is the increased movement of lower-value manufacturing from China to other developing economies as companies under margin pressure search for lower wage rates outside of China.  Countries including India, Thailand, Vietnam, and Brazil continue to successfully grow their share of global manufacturing as they become more cost effective countries for manufacturing. 

“The cost increases in China are impossible for companies to ignore,” said The Hackett Group Chief Research Officer Michel Janssen. “As Chinese wage rates rise, companies are looking to maintain their competitive edge by either bringing that production closer to developed markets, moving it to lower wage countries, or increasing productivity in China.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

The relationships between third-party logistics (3PL) service providers and shippers are seeing ongoing developments due in large part to the continuing emergence and sophistication of omni-channel retailing. That was one of the key findings of The 19th Annual Third-Party Logistics Study, which was released by consultancy Capgemini Group, Penn State University, and Korn/Ferry International, a global talent advisory firm.

Optimism in the form of increasing profits was a key takeaway in the Annual Survey of Third-Party Logistics (3PL) CEOs, released earlier this week at the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio.

Article Topics

Blogs · Global · Logistics · Manufacturing · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA