The Reshoring Option: Maybe it’s Time
Corporate Restructuring Group – February 2014 newsletter
The Deloitte CRG Newsletter addresses the current state and outlook for the CRG practice, including recent engagements, announcements, case studies and upcoming events.
The Reshoring option: Maybe it’s time
The common perception is that manufacturing jobs left the U.S. decades ago for low-cost labor overseas, and the country has settled into its international role as a service economy. Actually, government data shows the high point in manufacturing jobs was in 1978, with levels remaining steady as late as 2000, followed by a decline in the number of jobs as well as the sector's percentage of the total economy. Although we are settled into the build-it overseas paradigm, a number of factors are causing U.S. manufacturers to consider moving production back home.
Companies receive a lot of fanfare when they move manufacturing back home, and there is definitely evidence that this transition, termed Reshoring production ("Reshoring"), is increasing. A non-profit organization, the Reshoring Initiative, estimates that 80,000 jobs have been added to the U.S. since 2010 through Reshoring, providing a job multiplier effect equivalent to 160,000 jobs.
Framing the future of corporate governance
For those interested in the topic of corporate governance, these are dynamic times. The events of the past decade have led to the publication of a mountain of articles and research reports focusing on different aspects of governance, such as the role of the board, executive compensation, strategic oversight, and so on.
Deloitte CRG’s featured engagements this month include work with the following selection of clients: critical access hospital, restaurant retailer and a strategic lender. For an in-depth look at Deloitte CRG’s recent engagements, check out featured engagements.
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