A surge in offshoring since the 1960s had American companies confident they could cut labor costs by turning to nations like India, China, Malaysia, Pakistan and Vietnam for their manufacturing needs.
For over 50 years, offshoring was the solution, and for good reason. Billions of dollars were saved, and companies faced fewer issues related to labor and other ongoing costs.
Then, the pandemic hit. Costs and security issues began to rise and confidence in offshore manufacturing partners dropped, atop logistical and supply chain issues that revealed problems with relying on overseas providers for a host of products that arguably could be produced at home. High interest rates are cutting into potential savings. Even politics and border-related issues became problematic. Ultimately, labor arbitrage alone wasn’t a sufficient argument in keeping manufacturing abroad. Read More