Companies bringing manufacturing back to US

The U.S. manufacturing industry has come full circle. A report by PricewaterhouseCoopers U.S. shows that a number of factors including improved transportation costs and supply chain management are encouraging more companies to bring their factories back to the U.S.

"A host of structural changes is emerging that may lead to the U.S. becoming an important location for basing production and R&D facilities for several industries," Bob McCutcheon of PwC said. "In addition to trends in labor costs, other factors include the need to reduce transportation and energy costs; the emergence of the U.S. as a more attractive exporter and the relative attractiveness of the U.S. markets."

The rise in nearshoring is causing a number of companies to focus on their distribution networks as a way to further increase savings. With manufacturers closer to the end-user, businesses face fewer disruptions, shorter waits and increased flexibility. The report notes that transportation costs in particular have seen strong increases in the last decade. The shorter supply lines created by closer facilities can improve transportation management, allowing companies to save fuel and reduce risk.

Organizations can further save on transportation costs by working with a third party logistics specialist. These partners can help firms maximize the value of their freight management systems by increasing truck capacity and improving order fulfillment.

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