2015 A.T. Kearney U.S. Reshoring Index reveals false start

Published
January 20, 2016 - 06:00pm

U.S. manufacturing reshoring trends appear to have been short-lived, according to a Dec. 21 news release from A.T. Kearney, a global management consulting firm headquartered in Chicago.

"The reshoring phenomenon appears to have been more a one-off aberration than an inexorable trend," the firm reported, citing new data from its second annual A.T. Kearney U.S. Reshoring Index. "Data from 2015 confirms that offshoring is gathering steam, while the reshoring train has yet to leave the station."

Reshoring Initiative offers rebuttal to A.T. Kearney reshoring analysis.

The new A.T. Kearney U.S. Reshoring Index indicates a precipitous drop to –115, which the firm attributed to "lackluster domestic manufacturing growth and the resilience of the offshore manufacturing sector."

To calculate the index, A.T. Kearney collects data on the import of manufactured goods from 14 offshore trading partners in Asia: China, Taiwan, Malaysia, India, Vietnam, Thailand, Indonesia, Singapore, the Philippines, Bangladesh, Pakistan, Hong Kong, Sri Lanka and Cambodia. Next, the firm gathers data on the U.S. domestic gross output of manufactured goods. A.T. Kearney uses the data to calculate a manufacturing-import ratio.

The final index number is the year-over-year change in the manufacturing-import ratio, expressed in basis points. A positive number indicates net reshoring, while a negative value indicates net offshoring, the firm explained.

SaveSave

INDUSTRY NEWS

02/28/2024
December 2023 U.S. cutting tool consumption totaled $187.9 million, according to the U.S. Cutting Tool Institute(USCTI) and AMT – The Association For Manufacturing Technology.

02/27/2024
Successful shops always look for ways to differentiate and innovate for competitive advantage. Cashing in on the entirety of a tool’s life with an advanced tool management system is perhaps the most…

02/19/2024
Music was in the air at the press conference Fritz Studer AG held at its headquarters in Steffisburg, Switzerland, Feb. 9. With a theme of “The Sound of Studer,” the Music Motion Meeting 2024 event…