Design2Part Magazine's Mark Shortt says that while some companies may consider offshoring inevitable, domestic U.S. manufacturing offers some key advantages-- including "quality, reliability, and close customer relationships"-- that should convince companies to source stateside. Shortt points out that in addition to its preeminent product quality, U.S. manufacturing is also a pillar of the U.S. economy.  He cites some AAM data, namely that U.S. manufacturing is responsible for about $1.6 trillion, or 12 percent, of the nation’s Gross Domestic Product (GDP). Shortt says that companies may be surprised at the "hidden costs" that firms face when they move offshore: "poor quality to the impact of oil price increases on the cost of overseas shipping; difficulties in communicating design and engineering changes; fluctuation of currency exchange rates; and intellectual property infringement, to name a few." Interestingly, some manufacturing may be returning from China.  Shortt cites author Michele Nash-Hoff who says that "there is more business coming back from China because the cost savings of outsourcing to China are eroding":

Part of this is due to the Asian giant’s rising labor costs. But even more daunting are the high costs of transporting goods overseas, a situation that isn’t expected to improve anytime soon. “The shipping companies are in real financial trouble worldwide,” she cautioned. “Right now, the cost savings of doing business offshore are diminishing and will, in all likelihood, continue to diminish over the years. So I think we’re going to get more manufacturing coming back to the U.S. than I originally thought.”

Interestingly, it may be clean energy manufacturing that helps return work to the U.S. manufacturing base.  Shortt cites companies like Opel Solar Inc., and Apex Piping Systems, which are choosing to locate production in the U.S.  According to API’s Chief Technology Officer, John Boyle, U.S. manufacturing is simply the most reliable option:

“In an age of frequent international outsourcing, we have kept the production of nearly all of our generator components very local.  While beneficial to the U.S. economy at large, keeping our production local was driven by one very practical concern: quality of components. When it comes to the kind of high-quality components needed in any system involving hydrogen, the U.S. is still the world leader. And many of the best U.S. manufacturers are found right here on the East Coast.”

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