By John Brandt
President Barack Obama recently encouraged American manufacturers to bring production back to the United States, promising new tax proposals to encourage “insourcing.” That’s a lot of potential insourcing — because the vast majority of manufacturing plants import material and/or components from outside their home countries.
In fact, 75% of U.S. and international plants in the 2011 MPI Manufacturing Study import goods from other countries, representing 10% (median) of their material and components (as a percentage of dollar volume). Among the U.S. plants in the study, 76% import from outside the United States, representing 8% (median) of material and components.
China is the source of choice for outsourcing; 59% of plants imported materials and components from China in 2011, importing 2% (median) of material and components. Among U.S. plants, 56% import from China, for 1% (median) of their material and components.
Global trade is a two-way route: Approximately 75% of plants sold overseas in 2011, selling 7% (median) of their total dollar volume overseas. Similarly among U.S. plants, 75% sell overseas, for 5% of total dollar volume sales.
(% of dollar volume purchased outside home country)
|Imported material/components from China|
(% of dollar volume from China)
(as % of total dollar volume)
How well-connected is your firm with global suppliers and customers? And would tax incentives change your strategy?
Contact The MPI Group to learn more about the 2011 MPI Manufacturing Study findings and the
©2011 Next Generation Manufacturing Study findings.