12/10/2012
GE is moving appliance manufacturing back home, says Charles Fishman in The Atlantic Magazine, adding that GE is not alone in forsaking China and Mexico for U.S. plants and citing a U.S. “manufacturing renaissance” forecast by ISI Group’s Nancy Lazar.
Shortening product life cycles get part of the credit, says Fishman. When identical refrigerators were being built for seven years, Chinese manufacturing plants had plenty of time to set up and optimize their processes, he says, but now that refrigerator models change every couple of years a U.S. based plant can be more nimble when to models change.
Lean manufacturing, new collaborative relationships with unions, concerns about sharing intellectual property across the Pacific, increased shipping costs, increases in U.S. labor productivity, and demands for swift time-to-market also play a role, notes the author.
http://www.theatlantic.com/magazine/archive/2012/12/the-insourcing-boom/309166/?single_page=true
After years of offshore production, General Electric is moving much of its far-flung appliance-manufacturing operations back home. It is not alone. An exploration of the startling, sustainable, just-getting-started return of industry to the United States.