An article printed on April 29, 2014 in SupplyChain247, an online resource for Supply Chain Professionals, indicated that traditionally low-cost manufacturing bases such as China, Brazil, the Czech Republic, Poland and Russia have seen their cost advantages erode significantly since 2004. Study author Boston Consulting Group indicates that US manufacturing is now only 5% more costly on average than China, a shrinking differential that is driving increasing rates of reshoring activity.
Contributing factors to the erosion of traditional cost advantages in other countries include sharp wage increases, lagging productivity gains and unfavorable currency swings.
Injection Works is experiencing a marked increase in dialogue with clients who are considering moving production back to the United States. In fact, new projects awarded to Injection Works by international firms has grown in recent years, and represent over 25% of all new business development over the past twelve months. The company expects that trend to continue for the foreseeable future.