Moving Production Back Home from China
The threat that outsourcing poses to the U.S. economy and American workings is becoming of increasing concern, but some companies are finding it more economical to move production back from China to the United States.
ET Water Systems Inc., which specializes in water management and irrigation, is one example of a company that has wised up and decided to forgo outsourcing for domestic manufacturing. They are moving production of their product from China to San Jose in order to "eliminate import tariffs and duties, improve production quality and yield, and accelerate new product development."
Yet another example of why manufacturers oftentimes pay a higher price for outsourcing. The costs that come with sending production overseas may not be obvious, but they are very real, and ET Water's decision to bring production back is yet another example of manufacturers realizing that they are paying a higher price for outsourcing.
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