Last week Bloomberg BusinessWeek published an insightful article on the hassles of small manufacturers with their China businesses.

The jobs, not the products, are starting to return to our shops in North America.

“American production is “increasingly competitive,” says Harry Moser, founder of the Reshoring Initiative, a group of companies and trade associations trying to bring factory jobs back to the U.S. “In the last two years there’s been a dramatic increase” in the amount of work returning.”

“As costs in China rise and owners look closely at the hassles of using factories 12,000 miles and 12 time zones away, many small companies have decided manufacturing overseas isn’t worth the trouble.”

Our shops are seeing an increasing number of opportunities to manufacture products that were previously made in China.

Our consistent quality, agile ability to implement design changes, and faith in the raw materials to meet spec here in North America are helping our shops win this business back.

Freight costs continue to climb, and holding costs for the larger amounts of inventory needed to fill a  shipping container are also factors in the Make Here or Buy There decision.

The Boston Consulting Group predicted Cost Parity with China by U.S Manufacturers in 2015.
Many Precision Machining Shops are finding that they are competitive today.

Thanks to Bloomberg for the Article