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Insourcing Boom Leaves Experts Optimistic

Posted on by wildfireDev1

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FLS supports customers with a broad range of manufacturing expertise.

FLS supports customers with a broad range of manufacturing expertise.

Manufacturers received some encouraging news and statistics to close out 2012, and those numbers are expected to rise in 2013. Can it be true? Is insourcing poised for a comeback?

According to the Bureau of Labor Statistics, the manufacturing sector added 25,000 new jobs for December 2012, and the total number of factory jobs increased by 180,000 for all of 2012.

Some of the numbers to consider, currently there are 12 million manufacturing jobs, down from the 18 million in 1980. But recent indicators have shown that those numbers are expected to increase.

Due to changes in economic policies, and overhead and transportation costs, many U.S. firms are choosing to bring home manufacturing jobs from Mexico and China. This is welcomed news to U.S. workers who lost their jobs to outsourcing and have hoped for a change in attitudes and perceptions.

While the return of manufacturing for some industries to the U.S. is most assuredly out of the question, indicators show that the return of some products, and the ability to keep current ones, is becoming increasingly possible

Low on-shore costs and foreign countries opening plants here in the U.S. are two factors driving insourcing.

Companies willing to work with employees to simplify and shorten the design and manufacturing process, are proving to have a better chance of retaining jobs in this country.

As the economy continues to recover here in the U.S., many firms have come to realize that the cost savings of outsourcing are not as attractive as they once were, and that there are smarter ways to reduce overhead within the U.S with our own skilled and talented workers.

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