Logistics Concerns Could Reduce Overseas Manufacturing

Companies are considering moving their manufacturing away from foreign countries as off-shore manufacturing costs increase, a survey released Monday said.

The study surveyed leaders at U.S. and European manufacturers, mainly in the consumer goods and electronics industries.

With increasing oil prices and a recession across the globe, almost 90% of surveyed companies said they were considering switching to domestic manufacturing, a study by Archstone Consluting, Stamford, Conn., showed.

The study also found that off-shore manufacturing costs have increased in the past three years. Ocean freight costs have increase 135%, the global commodity price index has increased 27%, and manufacturing wages in China have risen 44%, the study said, among other conclusions.

In addition, issues such as delivery time, supply chain flexibility and transportation bottlenecks have made foreign manufacturing even less attractive, Archstone said.