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New On-Shoring Trend in the Manufacturing Industry

Posted 4:36 PM by

For many years, off-shoring was an upward trend in the manufacturing industry. Off-shoring jobs to China, for example, was a popular inventory cost control method for many manufacturers as China was seen as cheaper labor. 

But things are changing. U.S. manufacturers are starting to see an increase in labor costs for products they produce in China, and those cost savings are continually slipping away. Additionally, the increase in oil prices is driving an increase in transportation costs, which is also cutting into manufacturing profits.

As MSNBC reports, many companies that have off-shored for the past decade are now returning to the U.S. for these very reasons.  

About the Author

Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group as well as being a member of the Not-for-Profit and Governmental Services Groups. Justin works with clients to help them avoid risk and maximize efficiencies by keeping an eye on their bottom line and helping ensure accurate financial reporting. Connect with him on LinkedIn.

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