January 21, 2013
Automation GT’s article on the emerging onshoring trend has been featured on Automation.com, a news source for automation industry professionals and system integrators. Automation.com features the latest technology and products in manufacturing and factory automation, and we are pleased they have selected to highlight Automation GT.
Last quarter, Tim Cook announced that Apple would invest $100 million into US manufacturing. Although a small portion of Apple’s total net worth, the announcement is a high profile example of the recent onshoring trend which is predicted to be at the forefront of company agendas throughout 2013.
Onshoring, the movement of returning outsourced manufacturing back to the US, first began with labor issues in China. China’s low labor costs once compelled companies to outsource production abroad. Today, wages are five times higher than they were twelve years ago and are estimated to keep continue rising at 18% a year according to a recent article in the Huffington Post. Companies were also prompted to reconsider the benefits of offshoring when Chinese workers began to resist poor labor conditions in the form of strikes and suicides. The problem became so serious for Foxconn Technology Group, the largest contract electronics assembler, that they began to automate their operations in China. Operating automation abroad, however, is no more effective than operating automation here in the United States.