Insourcing

Jeff Immelt, CEO of General Electric coined this term as he called for a reinvestment in U.S. manufacturing jobs and announced plans to move parts of its aviation components group back to the U.S.

The trend seems to be catching on. Stanley Furniture, an 85-year-old maker of home furnishings will be bringing all of its remaining kid’s line that is produced overseas back the the U.S. It might be that the factors that made offshore production so attractive – cheap goods and labor – might no longer compensate for things like transportation costs, quality control, and intellectual property issues. Case in point, Stanley Furniture had to recall 300 cribs made in Slovenia in 2008. (although the company says that isn’t the reason it is changing course)

Recalls throughout the industry has made consumers wary nonetheless. And more control over the company’s inventory puts them in a better position. Perhaps “Made In The USA” has some appeal after all.

~Tony

Source: FORTUNE

Speak Your Mind

*