The U.S. industry to reshore its production in the United States

Usine-GM-WentzvilleInterviewed by the Boston Consulting Group, more than the majority of American executives believe their company is going to repatriate at least in part, its production sites in the United States. 16% of these enterprises are already conducting reshoringprojects. First affected by this movement of relocation, China, with the share of production could fall by more than 20%, in other Asian countries, but also Europe and the Mexico. Automation, but also a better-trained workforce, are the reasons put forward by American officials.

16% of the American company already involved in the relocation of their activities

GM-AutomatedGuided-Vehicles

Robotization, a way to make the relocation of production sites in economically developed countries possible.


The third edition of the study conducted by the BCG with American executives of industrial shows the interest of these companies for a strategy for relocation of their production sites in the United States. 37% were interested in 2012 against 54% today. 16% of the companies are already active on the issue. According their statements, within 5 years, their production will be carried out to 47% in the United States, an estimate an increase of 7% in 1 year. In parallel the production that they perform in China should decrease by 21%, was done in the rest of Asia down 22%. The Western Europe could suffer it also this relocation policy as their share in the production of American companies could decline by 10 to 8 per cent.

Shorten Supply Chain objective the most frequent of the relocation

Surprisingly, while french analysts point out at every opportunity that this are shale gas and therefore low costs energy in the United States that allow U.S. industry to become competitive, the American executives surveyed evoke other reasons in their relocation strategy. BCG---Executives-plan-to-invest-in-automation-or-other-avanced-manufacturing-to-enhance-product-competitivenessBCG---Executives-plan-to-invest-in-automation-or-other-avanced-manufacturing-to-enhance-product-competitivenessArgument no. 1 Advanced is to shorten the Supply Chain, the reduction of transportation costs, to better control manufacturing processes, the use of a more skilled workforce, or even an improvement in the quality. Among the secrets of this strategy of relocation is automation. 72% of executives surveyed say want to invest in more automation and advanced technologies of production. 71% say that these technologies will improve the economic equation of these relocations. Questioned by Industry Week, Harry Moser, the president of the Reshoring Initiative, estimates that in 2003 the United States lost 150,000 jobs per year due to offshoring, a situation now stabilized and foreign to the United States investment made positive 30,000 positions in 2013. A model for Europe.

Translation : Bing Translator

Sources :

“More US Manufacturers are Coming Home”, IndustryWeek, October 23, 2014

“Relocalisation : le “Made in USA” fait son grand retour”, La Tribune, October 23, 2014

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