Insourcing – The Hot New Trend in American Business

Insourcing – The Hot New Trend in American Business
Google has announced that it will manufacture its new tablet device in the United States.

After hundreds of thousands of manufacturing jobs and customer service jobs being shipped overseas in recent decades, many American companies, particularly in the technology sector, have started a new trend:  insourcing – the hot new trend in American business. After sending jobs to countries such as China, India and Mexico to reduce labor costs, many companies have announced that they will bring jobs back to the United States. These companies recognize the value of hiring American workers, especially younger workers who have grown up in the technology era. Having grown up around computers, iPods and other technology devices, young workers have a comfort and familiarity with technology that makes them sources for fresh new ideas and improvements. Insourcing makes good public relation sense as well. Hiring American workers makes for positive press attention.

Spurred by tax breaks for repatriating jobs in America, companies in numerous industries have announced plans to insource jobs in coming years, while technology giant Google has announced that it will manufacture its new tablet computer in the United States, a retro move when most electronics are manufactured overseas. Automaker Ford has announced plans to build more of its vehicles in plants in Michigan and Ohio. South Carolina-based Otis Elevator Company has announced plans to build a new plant in the state. Other American companies jumping on the insourcing bandwagon include Master Lock, GalaxE Solutions and Chesapeake Bay Candle. Meanwhile, Google will make its new Nexus Q tablet device in the U.S., at a time when many other companies manufacture their devices in China and other countries with cheaper labor costs and looser environmental regulations.

The insourcing trend could potentially give a big boost to the still-fragile economic recovery and strengthen America’s middle class. Thousands of new American jobs, and the additional consumer spending they will generate, will prop up our consumer-driven economy.

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