There seems to be a global shift where it comes to strategic sourcing and manufacturing. It is almost as cheap to produce something in the United States as in China nowadays and it is time for companies to reconsider their views of the world.
In the investigation “The shifting economics of global manufacturing” from BCG Perspectives, global competition between nations in terms of wages, productivity, energy costs and exchange rates are examined. The research reveals significant shifts in relative costs, contradicting the commonly held view of where to manufacture products.
Manufacturing is probably going to become more regionalized in the future, if the trend continues. Relatively low-cost manufacturing is now available in all regions of the world. This means that more and more goods in Asia, Europe and the Americas will be manufactured closer to home for the companies. For instance, in the last year 11 % of small and midsized manufacturing in the UK has been brought back to the domestic islands.
We recommend everybody to read the brief report and its tables, it might change previously hold perceptions of many individuals and firms. Read the full report here