January 2014 - The “near-shoring” movement that’s been creating buzz in the supply chain world is getting a significant boost from consumers. Many thousands have signed a “Buy American” pledge, thanks to initiatives that include the Million Jobs Project an ABC World News series on Made in America and Wal-Mart’s “Buy American” campaign and commitment to source an additional $50 billion in products from U.S. manufacturers). This grassroots advocacy is being driven by jobs. Today, nearly 60 percent of everything U.S. consumers buy is made overseas, but if everyone were to spend just 5% more on made-in-America goods, 1 million jobs would be created.
If enough consumers get onboard, the pressure may just push the near-sourcing trend past the tipping point. Some large companies, including General Motors, Whirlpool and Caterpillar, already have brought home a portion of their manufacturing due to the rising costs of outsourcing and the need to improve service and reduce inventory by moving closer to the consumer.
“Near-shoring is increasingly being considered an effective business strategy as companies consider rising transportation costs, physical and political risks, and where their customers, manufacturing and supply clusters are located,” says Wade McDaniel, vice president of Supply Chain Solutions, Avnet Velocity. As a featured speaker at the upcoming Supply Chain & Transportation USA Conference, McDaniels will share his experience and expert knowledge on the near-shoring trend. “During the conference, we will explore how companies can effectively evaluate whether near-shoring is the right move, the factors to consider, and best practices for implementation,” he says.
Near-shoring is just one of many hot topics to be discussed at the inaugural Supply Chain & Transportation USA Exhibition & Conference, March 17-20, at the Georgia World Congress Center, Atlanta, GA.