We comment on a recent Time.com article asking whether the U.S. Renaissance is real.
As Global manufacturing consultants, NPI has been working with various clients analyzing True cost of ownership. To date, even though we have helped clients to re-shore, off shore, and near shore, our experience is that the TCO dollars and cents have not supported the mass movement of manufacturing that the press would indicate.
This is in agreement with Goldman Sachs’ chief economist Jan Hatzius argument that that the U.S. “manufacturing renaissance” is cyclical, not structural…”
“Yes, manufacturing is coming back, but it’s evolving into a very different type of animal than the one most people recognize today,” says James Manyika, says James Manyika, director of McKinsey Global Institute, which recently did an exhaustive study on this shift entitled “Manufacturing the Future.” “We’re going to see new jobs, but nowhere near the number some people expect, especially in the short term.”
At the end of the day, you need to do a thorough analysis of your TCOs verses just setting your direction base on the headlines. We are not sure that this is a true “U.S. Manufacturing Renaissance”, but this trend has a clear audible signal and we are keeping our ear to the ground.