Industrial journalist, TR Cutler argued the costs of offshoring to China is becoming cost prohibitive and ineffective due to distance and a slowdown in manufacturing output, the lowest level in three years. Additionally, dozens of cities, including Shenzhen and Shanghai, were partially or fully sealed off in recent months and these restrictions have disrupted global supply chains while goods pile up at the world’s busiest container ports. Read more in the August issue of Manufacturing Outlook, a Jacket Media Co publication.
Inexpensive labor was the carrot that got businesses to move production to Asian countries forty years ago. Now the average labor wage per hour in China is consistently higher than other manufacturing-focused countries.
The idea of nearshoring may be a solution to counter the increasing costs of production in Asia. According to Rafael Atehortua, LATAM Manager for the Manufacturing Media Consortium, The Road Freight Transport Market Share in Colombia is expected to increase by USD 1.30 billion from 2021 to 2026 with an accelerated CAGR of 4.58%, according to the recent market study by Technavio.
The transcontinental country of Colombia covers South America and a small portion of North America. Colombia has five major ports and around 15 river ports. Atehortua suggested, “As more North American companies turn to nearshoring, Colombia is poised for even greater growth. The wait time from Asia is both untenable and prohibitively expensive. Products from Colombia to any United States port are less than a week away.”
Thomas R. Cutler authors more than 1000 feature articles annually regarding the manufacturing and industrial sectors, with emphasis on robotics, lean manufacturing, technology breakthroughs, and media coverage of the sector.
Cutler is the President and CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc. , celebrating its nearly quarter century in business. Cutler is the founder of the 9000+ Manufacturing Media Consortium which includes more than 9000 journalists, editors, and economists writing about trends in manufacturing, industry, material handling, and process improvement.
Cutler has established special divisions including African manufacturing, LATAM/Colombian manufacturing, Gen Z workforce, and Food & Beverage, andIndustrial Coaching. Over 5200 industry leaders follow Cutler on Twitter daily at @ThomasRCutler. Contact Cutler at trcutler@trcutlerinc.com.
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