As more companies look to the US for manufacturing, factory floor wages remain low, losing ground vs other sectors.

Reversal of Outsourcing

For many years, the US simply was not competitive in manufacturing for global companies & many American factories lost opportunities. However, we’ve seen several news stories in recent weeks regarding the reversal of outsourcing in manufacturing.
In fact, in a new study by the Global Supply Chain Institute in UT ‘s Haslam College of Business, co-author Ted Stank says, “Countless factors can harm performance when supply chains are stretched across the globe.  For some, outsourcing has become less effective simply because of rising costs of labor and transportation. For others, management of the logistical process is too complex to be efficient when outsourcing.
The downsides to outsourcing can outweigh the positives for some companies. As companies become more aware of the true cost of a global supply chain, they realize that it just doesn’t make sense in every situation.

Factory Hiring Sees Big Jump in November

In an article released on Reuters last week, the numbers show that US factories are making a strong comeback both in sentiment and in reality.

U.S. factories added 28,000 jobs in November, the most in a year, according to government data released on Friday. Manufacturers also raised the average work week for their production workers to 42.2 hours, returning to levels reached earlier in 2014 that were the highest since the end of World War Two. – Reuters

Despite the optimistic news, wages remain low. An article on shows that US factory wages have fallen woefully behind other sectors in the past decade. Will all the recent hiring lead to an increase in wages & help this incredibly important sector catch up? We certainly hope so & we’ll be keeping a close eye on it.