CHICAGO—Of manufacturers planning to add production capacity over the next five years for goods consumed in the U.S., more plan to add that capacity in the U.S. than in any other country—a sharp reversal since as recently as two years ago. And a rising percentage of U.S.-based executives at the manufacturers say they are already in the process of reshoring production work from China. These are among the findings of new research released today by The Boston Consulting Group (BCG).
Thirty-one percent of respondents to BCG’s fourth annual survey of senior U.S.-based manufacturing executives at companies with at least $1 billion in annual revenues said that their companies are most likely to add production capacity in the U.S. within five years for goods sold in the U.S., while 20% said they are most likely to add capacity in China. Asked the same question in 2013, 30% of respondents said that China was the most likely destination for new capacity devoted to serving the U.S. market, while only 26% said capacity would be added in the U.S.
Even though China will remain a major exporter to the U.S., which accounted for around 18% of its total exports through the first eleven months of 2015, the suggestion that the U.S. has surpassed China as the most likely destination for new manufacturing capacity is striking.
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