Many of us suspected moving manufacturing out of the country to places like China would mean bad economic news for the United States.
While corporations and manufacturers were able to save oodles of money, the move left Americans needing good-paying jobs.
Now, entrepreneurs are seeing shipping delays because, in part, of COVID-19, and shipping costs are skyrocketing.
Could it be time companies bring business back to the United States?
Consider these statistics uncovered by the consulting firm Kearney:
• Fifty-two percent of U.S. manufacturing executives said they have been buying more supplies in the United States in response to COVID-related supply disruptions.
• Forty-seven percent said they plan to reduce reliance on supplies or factories from a single country.
• Forty-one percent said they wanted to cut their dependence on China.
However, some companies stayed put here in the United States, resisting the possibility of higher profits from operating overseas. Now, they don’t have the supply problem expatriate companies do, nor do they pay import taxes.
But leaving China will be difficult for those who wish to move back to North America. Operation costs remain low in China, and in some cases, equipment must be left there, enabling workers in China to produce a competing product at a lower cost.
And of course, moving costs money, regardless of where you’re moving to.
We wish companies well who want to bring jobs back to the United States. They are needed here. We also wish companies well who never left. Perhaps they are reaping the rewards of their loyalty.