Manufacturing Returning To U.S.?

By: Ian Campbell | Tue, Jul 24, 2012
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There are increasing reports of repatriation of manufacturing to the U.S. from China and other low cost producer nations where product transportation costs are high, and where in some cases for 'high end products' (some furniture products for example) quality is seen to be better for 'made in America' products. That said:

Be somewhat skeptical of media reports (verbal or written) that proclaim 'manufacturing returns to America' as if that return, now a few drops of rain dropping from overcast skies, is going to become a deluge any time soon.

The big deal at a high level is not 'manufacturing returning to America'. The big deal is 'manufacturing jobs returning to America' if America is going to have any chance of reverting to some semblance of its former 'economic powerhouse' self.

In a nutshell, I believe:

Everyone in American and all developed countries in economic difficulty want to believe things at some point will revert to 'the way things were'. The closest they likely are going to come to what in retrospect were the 'great times of the 1960's through 2007 is to listen to 'oldies but goodies' on their electronic devices.

Topical Reference: As China costs rise, technology lures factories home, from Reuters, Scott Malone and Ernest Scheyder, July 24, 2012 - reading time 3 minutes.



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Business Transition Simplified

Through his website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world economic and financial markets influences on those two topics. A recognized business valuation and transition authority, he founded Toronto based Campbell Valuation Partners Limited (1976). He currently is working to bring his business valuation and transition experience to both business owners and their advisors in our new economic, business and financial markets normal.

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