Many companies have used outsourcing through decades. In the U.S. outsourcing have been used since the 1950's, but not as much as now. In the video "'This Week: Made in America'" we hear that today more than 50% of what the Americans buy are made outside the U.S. The main reason for outsourcing is the cheaper labor and manufacturing costs.
You may have been used to see your products labeled with "Made in China", which is because of the cheap production in the country. However, insourcing has been more attractive to many American firms, which this essay will inform more about. This essay will also discuss what the U.S. Government and American manufacturers can do to keep jobs in the country.
American companies are using insourcing more for many reasons and some of them are mentioned in the article "U.S. manufacturing is back - but can Americans do the job?". One of the reasons is that the American workforce is way more flexible than the Chinese. In addition, American workers are also more effective.
Another reason is that the oil prices have raised and therefore made the transport between Asia and the U.S. more expansive. Furthermore, the wage in Asian countries has risen due to economic development.
Another reason for the current insourcing of jobs to the U.S. is the American pride. The commercial "Chrysler and Bob Dylan Super Bowl Commercial 2014" focuses on originality. Another thing that is mentioned in the commercial is that some production kind of belongs to particularly countries such as the beer production, which belongs to Germany. The commercial focuses also on how it is not possible to transfer pride to another country.
A statistic made by the U.S. Bureau of Labor Statistics from the article "Will manufacturing jobs return to the U.S.?" says that the utility costs in China have risen by 15% between 2010 and 2011. The Chinese expenses have risen because of the modernization, and the result of that is that the Chinese advantage in manufacturing costs over the U.S. has declined to less than five percent.