CHICAGO, Dec. 15, 2014 /PRNewswire/ -- Global strategy and management consulting firm A.T. Kearney today released its 2014 Reshoring Index®, the first in a series of studies looking objectively at the rate and pace of the return of manufacturing operations to the U.S. In this inaugural Index, manufactured goods flows are tracked over a 10-year period to show the change in ratio between U.S. manufacturing imports and gross output during that time period. The index is actually expected to show a year-over-year decline, lower by 20 basis points from 2013, as offshoring to foreign manufacturing markets outpaces reshoring.
Patrick Van den Bossche, A.T. Kearney partner and leader of the firm's Americas Strategic Operations Practice and co-author of the Index, notes, "Our goal was to find out for ourselves whether companies are indeed leaning toward reshoring operations, and if so, what are the motivators driving them. We've been following these questions with interest since 2010, and have a growing database of 700+ reshoring cases across all industries."
The A.T. Kearney Reshoring Index®
(Year-over-Year Change in the U.S. Manufacturing Import Ratio)
"While the so-called reshoring trend has helped improve the mood of U.S. manufacturing since the Recession, the reality is that the import value of manufactured goods into the U.S. from 14 low-cost Asian countries has grown at an average of 8 percent per year in the last five years," added Pramod Gupta, A.T. Kearney principal and study co-author. "The 2014 Reshoring Index is not only an indicator of U.S. manufacturing capital flows, but also how the U.S. stacks up in terms of attractiveness as a source of manufactured products versus countries like China, Bangladesh, and Cambodia."
Key highlights include:
- The top three reshoring industries, as measured by the number of cases in A.T. Kearney's database, are electrical equipment, appliance and component manufacturing, with 15 percent of the cases; transportation equipment manufacturing, with 15 percent; and apparel manufacturing, which previously had not been expected ever to come back, with 12 percent.
- Improvement in delivery time led the reasons executives gave in favor of reshoring, with quality improvement a close second and followed by brand/image.
- While there has been an overall lift in U.S. manufacturing for five straight years since 2009, imports of offshored manufactured goods into the U.S. have increased at a faster rate than any return of manufacturing operations to our soil and, for the 14 top offshoring locations combined, amounted to $630 billion in 2013.
Those 14 top offshoring locations (China, Taiwan, Malaysia, India, Vietnam, Thailand, Indonesia, Singapore, Philippines, Bangladesh, Pakistan, Hong Kong, Sri Lanka, and Cambodia) are also included in the study, along with a tracking of the year-over-year change in Manufacturing Import Ratio (see below) from 2004 through 2014.
About A.T. Kearney
A.T. Kearney is a global team of forward-thinking partners that delivers immediate impact and growing advantage for its clients. We are passionate problem solvers who excel in collaborating across borders to co-create and realize elegantly simple, practical, and sustainable results. Since 1926, we have been trusted advisors on the most mission-critical issues to the world's leading organizations across all major industries and service sectors. A.T. Kearney has 59 offices located in major business centers across 40 countries.
To learn more about A.T. Kearney, please visit http://www.atkearney.com.
About the 2014 A.T. Kearney Reshoring Index
The A.T. Kearney Reshoring Index® measures the change in ratio between U.S. Manufacturing Imports and Gross Output over time. As source material, it uses the aggregation of a decade of watching shifts in reshoring and understanding the reasons behind it, using primary data from a proprietary survey administered to senior executives of global corporations as well as reshoring information reported in the media. Respondents include C-level executives and regional and business heads. The 700+ cases tracked span all industry sectors.
The Index depicts flows of capital, not shifts in physical assets or employment levels. It represents the choice that U.S. executives make between domestic production and offshore production to meet domestic and U.S. demand. It is intended to normalize changes in market demand: an increase in U.S. manufacturing does not equal an increase in reshoring.
Photo - http://photos.prnewswire.com/prnh/20141215/164338-INFO
Logo - http://photos.prnewswire.com/prnh/20120925/CG80591LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/2014-at-kearney-reshoring-index-down-20-basis-points-year-over-year-from-2013-uncovers-what-manufacturers-are-actually-doing-300009465.html
SOURCE A.T. Kearney
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article