Study Says US on Track to Compete with China on Cost PDF Print E-mail
Written by Mike Buetow   
Monday, 22 April 2013 10:56

ATLANTA -- The US has reached parity with Mexico as a preferred nearshoring location, and is positioned to compete with China even in terms of costs, new research asserts.

According to a new study by AlixPartners, 37% of respondents prefer the US for nearshoring, which is the same percentage that said Mexico.

Nearly half those companies responding are looking at nearshoring for handling US sales channels, the firm found. Moreover, "the US appears to be on track to achieve cost parity with China by 2015," AlixPartners wrote.

More than 70% cited the lower freight costs, lower inventory and faster time to market as reasons for relocating operations closer to end-markets. Some 58% of executives surveyed said they have reduced or expect to reduce total landed costs by 5 to 20% as a result of nearshoring.

Better quality control and improved security of intellectual property were also factors, but less so than tighter channel control.





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