Most plastics firms expect to benefit from reshoring
BOSTON (April 20, 11:55 a.m. ET) -- More than a third of large
U.S.-based manufacturers plan to bring production back to the United
States from China, according to a survey from the Boston Consulting
Group.
Executives at 106 companies with sales greater than $1 billion responded to BCG’s “Made in America, Again” survey. Of those, 37 percent said they plan to reshore manufacturing or are “actively considering” reshoring.
Plastics and rubber companies were the most favorable to reshoring – 67 percent of rubber and plastics molding companies surveyed said yes to the question: “Given the fact that China's wage costs are expected to grow 15-20 percent per year, do you expect your company will move manufacturing to the United States?”
Companies with annual sales of more than $1 billion were also more favorable to reshoring, with 48 percent responding yes.
Labor costs, product quality, ease of doing business and proximity to customers were the most common reasons for considering reshoring.
According to the survey, 92 percent of respondents said that “Wage costs in China will continue to escalate” and 72 percent agree that “sourcing in China is more costly than it looks on paper.”
BCG, a global management consulting firm, conducted its survey online. It drew responses from 106 U.S.-based manufacturing executives at companies with more than $1 billion in annual sales in a variety of industries. Select follow-up interviews were held in February.
Most of the companies surveyed make products for U.S. and international markets and manufacture both in the U.S. and abroad, according to a report from BCG.
Executives at 106 companies with sales greater than $1 billion responded to BCG’s “Made in America, Again” survey. Of those, 37 percent said they plan to reshore manufacturing or are “actively considering” reshoring.
Plastics and rubber companies were the most favorable to reshoring – 67 percent of rubber and plastics molding companies surveyed said yes to the question: “Given the fact that China's wage costs are expected to grow 15-20 percent per year, do you expect your company will move manufacturing to the United States?”
Companies with annual sales of more than $1 billion were also more favorable to reshoring, with 48 percent responding yes.
Labor costs, product quality, ease of doing business and proximity to customers were the most common reasons for considering reshoring.
According to the survey, 92 percent of respondents said that “Wage costs in China will continue to escalate” and 72 percent agree that “sourcing in China is more costly than it looks on paper.”
BCG, a global management consulting firm, conducted its survey online. It drew responses from 106 U.S.-based manufacturing executives at companies with more than $1 billion in annual sales in a variety of industries. Select follow-up interviews were held in February.
Most of the companies surveyed make products for U.S. and international markets and manufacture both in the U.S. and abroad, according to a report from BCG.
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