Reshoring: Reassessing the Offshoring Strategy 99 80

Authors

  • Gary L. Whaley Norfolk State University, USA Author
    • Monef Belhadjali Norfolk State University image/svg+xml Author
      • Sami M. Abbasi Norfolk State University image/svg+xml Author

        DOI:

        https://doi.org/10.31686/ijier.vol3.iss11.464

        Abstract

        This paper examines the motives behind the growth of the offshoring movement embraced by most American manufacturing firms beginning the late part of the 20th century. The motives behind the offshoring trend started as a basic move to reduce the labor costs of manufacturing. It later evolves into a new business model for organizational growth and expansion into the global markets.
        But, beginning about 2010, the offshoring movement began to be replaced with a trend to bring manufacturing jobs back to the U. S. A. This became known as the reshoring movement. This paper examines the forces behind the reshoring movement as well as some of the reactionary forces and obstacles which the reshoring movement will have to address if it is be become and remain as a sustainable business strategy for American manufacturing.

        References

        AFL-CIO, 2015. Trans-Pacific Partnership Free Trade Agreement

        http://www.aflcio.org/Issues/Trade/Trans-Pacific-Partnership-Free-Trade-Agreement-TPP

        Aol.com, 2015. Average American Wages are on the Decline, posted September 29, 2015.

        http://www.aol.com/article/2015/09/28/average-american-wages-are-on-the-decline/21241983/

        BLS, 2015. Labor force statistics from the current survey, Bureau of Labor Statistics, October 17, 2015.

        http://data.bls.gov/timeseries/LNS123000009. Cahill, K., 2015. September 2015 Manufacturing ISM Report On Business, Press Release for October 1, 2015. https://www.instituteforsupplymanagement.org/ismreport/mfgrob.cfm14. DePillis, L., 2015. Labor fight at West Coast ports comes to an end — for now ... Washington Post, 2015. February 21, 2015. http://www.washingtonpost.com/news/wonkblog/wp/2015/02/21/labor-fight- at-west-coast-ports-comes-to-an-end-for-now/ Denning, S., 2012. Why Apple And GE Are Bringing Back Manufacturing, Forbes, December 7, 2012. http://www.forbes.com/sites/stevedenning/2012/12/07/why-apple-and-ge-are-bringing-manufacturing- back/.

        Douglas, A., 2015. Made in the U.S.A: Is Outsourcing Dead? The Benefits of Manufacturing in the U.S.

        vs. Overseas. Posted May 28, 2015. http://www.business.com/manufacturing/made-in-the-usa-is-outsourcing-dead/ Gerard, L., 2015. TPP: Foie Gras for Corporations; Dead Rats for Workers. Huff Post Politics, October 17, 2015. Posted: 10/12/2015 8:36 am EDT Updated: 10/12/2015 10:59 am EDT

        http://www.huffingtonpost.com/leo-w-gerard/tpp-foie-gras-for-corpora_b_8276914.html

        Goldman, D., 2012. Why Apple will never bring manufacturing jobs back to the U. S., October 17, 2012.

        http://money.cnn.com/2012/10/17/technology/apple-china-jobs/ Govtrack, 2012. S. 3364 (112th): Bring Jobs Home Act, Govtrack.us.

        https://www.govtrack.us/congress/bills/112/s3364

        Hagerty, J. R. and Magnier, M., 2015. Companies Tiptoe Back Toward ‘Made in the U.S.A.’, Wall

        Street Journal, January 13, 2015. http://www.wsj.com/articles/companies-tiptoe-back-toward-made-in- the-u-s-a-1421206289

        Ikenson, 2015. Trade Promotion Authority and the Trans-Pacific Partnership: What Lies Ahead? CATO Institute

        Free Trade Bulletin No. 61. http://www.cato.org/publications/free-trade- bulletin/trade- promotion-authority-trans-pacific-partnership-what-lies-ahead

        Jaixing and Yangon, 2015 Rising Chinese wages will only strengthen Asia’s hold on manufacturing. The

        Economist, March 14, 2015. http://www.economist.com/news/briefing/21646180-rising-chinese-wages-will-only-strengthen-asias-hold-manufacturing-tightening-grip

        Lewin, A. and Peeters, C., 2006 The Top-line Allure of offshoring, Harvard Business Review, March

        https://hbr.org/2006/03/the-top-line-allure-of-offshoring

        Macro Trends, 2015. Crude Oil Price History Chart. http://www.macrotrends.net/1369/crude-oil-price- history-chart

        McCain, B., 2015. Will China's Currency Devaluation Spark An International Trade War?

        Forbes/Investing, August 25, 2015. http://www.forbes.com/sites/brucemccain/2015/08/25/will-chinas- currency-devaluation-spark-an-international-trade-war/ DOI: https://doi.org/10.1057/9781137502049_3

        Petrov, S. 2015. Container shipping spot rates returned on decreasing trends, Maritime News, August

        , 2015. http://www.newsmaritime.com/2015/container-shipping-spot-rates-decreasing-trends/

        Rooney, B., 2008. Manufacturing activity at 26-year low Business research group says its index fell to

        recessionary level. CNN Money.com staff writer Last Updated: November 3, 2008:

        http://money.cnn.com/2008/11/03/news/economy/ISM_October/ Samarxhiu, A., 2014. Bringing jobs back to America: Rebuilding manufacturing through reshoring. Plant Engineering, October 29, 2014. http://www.plantengineering.com/single-article/bringing-jobs- back-to-america-rebuilding-manufacturing-through-shoring/685c6da022326ee6de183eea7db99a93.html

        Scott, R.E., 2013. NAFTA’s Kegact: Growing U. S. Trade Deficits Cost 682,000 Jobs, Economic Policy

        Institute, Decempber 17, 2013. http://www.epi.org/publication/nafta-legacy-growing-us-trade- deficits-cost-682900-jobs/ Strangler, C., 2015. West Coast Port Slowdown: Labor Dispute Hits U.S. Economy Hard, International Business Times, October 12, 2015. http://www.ibtimes.com/west-coast-port-slowdown-labor-dispute- hits-us-economy-hard-1820740

        TSA, 2015. Bigger, Faster, Cleaner: The Changing Economics of Fuel, TSA—Bunker Fuel Charges

        Fact Sheet, January 1, 2015. http://www.tsacarriers.org/fs_bunker.html West End Advisors, 2015. U.S. ISM MANUFACTURING INDEX – APRIL 2015, Released Friday, May 1, 2015. http://www.westendadvisors.com/2015/05/u-s-ism-manufacturing-index-april-2015/

        Whitecomb, D. and Gorman, S., 2012. Deal reached to end L.A. port strike, Rueters, U.S.

        edition,December 5, 2012. http://www.reuters.com/article/2012/12/05/us-usa-port-los-angeles-idUSBRE8B319D20121205

        Downloads

        Published

        2015-11-01

        How to Cite

        Whaley, G. L., Belhadjali, M., & Abbasi, S. M. (2015). Reshoring: Reassessing the Offshoring Strategy. International Journal for Innovation Education and Research, 3(11), 42-48. https://doi.org/10.31686/ijier.vol3.iss11.464