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Central to new product development is the budget, and exploring economic efficiencies often leads to offshoring options. This is especially true when the new product development program (NPD) involves injection-molded plastic components for industrial/consumer applications, as overseas costs are particularly attractive compared to domestic production.
With nearly a quarter million manufacturing jobs reshored in the U.S. since 2010, it appears many automotive manufacturers are finding upfront offshore savings come with a heavy cost in parts shortages, production line shutdowns, product defects and transportation delays.
According to a survey by Boston Consulting Group (BCG) in late February, more than one-third of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring production back to the United States from China or, are considering it. That’s great news for American manufacturing.
Thirty-seven percent of respondents indicated they are planning to “reshore” operations or are “actively considering” it. That response rate rose to 48 percent among executives at companies with $10 billion or more in revenues—a third of the sample.