BCG: 2015 MFG Exec Survey - Key Findings For MEDIA

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BCG Presentation: 2015 MFG Exec Survey – Key Findings For MEDIA

Key Learnings from the Presentation

The BCG’s 2015 report titled “Made in America, Again” provides an analysis of the trends and attitudes of U.S.-based manufacturing executives toward reshoring production back to the United States. Here’s a concise and structured summary highlighting the key findings and insights.

Executive Summary

• Increasing Reshoring Activity:
  • There has been a substantial increase in the number of companies reshoring production to the U.S., with 17% of surveyed executives currently engaged in such activities—a 2.5-fold increase from 2012.
  • The trend shows a shift from merely considering reshoring to actively implementing it.
• Preference for U.S. as a Production Hub:
  • A growing preference for locating new manufacturing capacities in the U.S. is evident, with 31% of executives choosing the U.S. over other locations like China and Mexico. This marks a significant reversal from previous years where China was more favored.
• Drivers of Reshoring:
  • Key factors driving reshoring include the need to shorten supply chains, reduce shipping costs, and access a skilled workforce. These are cited more frequently than traditional cost factors.
  • Additionally, 56% of executives believe that decreasing costs in automation technology have enhanced their competitiveness.
• Impact on Job Creation:
  • Executives are optimistic about job creation, with a majority expecting net job gains within the next five years, outweighing those predicting declines by a 2-to-1 margin.

Detailed Findings

• Survey Methodology:
  • The survey included responses from senior-level executives across diverse manufacturing sectors, providing a broad perspective on industry trends.
• Reshoring Dynamics:
  • The primary reasons for moving production back to the U.S. are to improve control over manufacturing processes, enhance product quality, and be closer to customers and suppliers.
  • Access to skilled labor is increasingly a strong motivation for reshoring, with a significant number of companies moving production to the U.S. for this reason.
• Technological Investments:
  • A vast majority of executives (71%) believe that investments in automation and advanced manufacturing technologies will further improve the economics of localized production.

Strategic Implications

• Competitive Advantage:
  • The shift towards reshoring can provide U.S. manufacturers with competitive advantages in terms of market responsiveness and innovation.
• Workforce Development:
  • There is a critical need for enhancing skills and training to meet the demands of increasingly automated and technology-driven manufacturing environments.
• Policy Support:
  • Policies that support technological advancements and workforce training are essential to sustain and amplify the benefits of reshoring.

About Boston Consulting Group (BCG)

BCG is a global management consulting firm with a wide range of services in strategy, operations, corporate finance, and sustainability, among others. It is well-known for its innovative approach to solving business and societal challenges. BCG places a strong emphasis on thought leadership and has made significant contributions to business strategy concepts. The company is committed to delivering solutions that combine human insight, technology, and strategic vision to drive competitive advantage and growth for its clients.

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