manufacturing jobs

Manufacturing Jobs Boost Image

A new trend in on- and re-shoring is expected to help U.S. manufacturers begin to boost their hiring numbers, a move that could help reverse manufacturing job losses for workers with skilled trade experience on their resume


According to a recent study by researchers at the Massachusetts Institute of Technology, 61% of larger companies are now considering bringing manufacturing jobs back to the U.S, while 40% of contract manufacturers have done reshoring work at some point this year.

Harry Moser, president and founder of the Reshoring Initiative, told a recent forum at Mississippi State University's Franklin Furniture Institute that many companies are starting to bring factory jobs back to the U.S. due to the overall higher cost of doing business overseas.

So many companies focus on rudimentary costs, not the whole cost, which can add 20 to 30 percent, Moser stated. "You may have improved margin by offshoring but your quality may have worsened and your overhead costs may be higher."

Guy Lipscomb, chief executive officer of Southern Motion, a Mississippi-based furniture company, told the Northeast Mississippi Daily Journal that he never thought hiring offshore workers would be right for his company.

We didn't see the cost reduction opportunities that a lot of companies thought they'd have, he told the news agency. "If you look at the 'China price' only, you're not looking at the total cost."

Larger companies that have already started to bring back manufacturing jobs to the U.S. include Dow Chemicals, Caterpillar, General Electric and Ford Motors.

Earlier this year, the San Diego Regional Manufacturing Sector Report found that many manufacturing companies in the state said there was a shortage of workers with the right qualifications on their resume, forcing them to recruit from different parts of the country.

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