Re Shoring

For a long time now American manufacturers have been moving their operations off shore. Many have moved to China.

It seems fair to ask whether these manufacturers are American at all. Most of us would at least hope that American businesses would do everything in their power to continue operating from American soil and contributing to American prosperity.

I have talked about this with an industrial designer who visits Oriental from time to time. He and I share the view that many manufacturers have moved offshore for very minor benefits.

Last Thursday's Financial Times reports that the trend may be reversing itself. Some factories whose products in recent years were entirely manufactured in China are now moving back to the US.


Among the factors supporting such a move: US producers are becoming more competitive; US-based factories can respond more quickly to customer desires; products are freed from shipping delays; customs issues do not arise.

FT calls the process "re-shoring." I would have thought "on-shoring" (opposite of "off-shoring") would be more appropriate.

This might be good news. One reason China works so hard to control their currency exchange rate is to try to prevent companies from returning to the US. But China's labor costs are rising.