Richard McCormack’s recent issue of Manufacturing and Technology News has this lead article.
The Case Against Shifting Production To China; Hidden Costs And Growing Risks Make U.S. Attractive For Manufacturing
By Richard McCormack
Rising costs in China along with dozens of hidden costs are making it more economical to either keep manufacturing in the United States or bring it back from China, according to research into the true costs of outsourcing.
Companies are not adequately accounting for dozens of hidden costs and growing risks associated with outsourcing production to China, according to David Meeker of Neoteric Product Development based in Acton, Mass., and a lecturer at the Massachusetts Institute of Technology. When companies tally all of the costs of offshore outsourcing and adopt new design techniques for streamlining manufacturing, the cost advantage of moving production to China disappears.