Seaports Magazine - Summer 2013 - (Page 10)

»FeAtURe sourcing near and far The benefits of offshore production are changing for many manufacturers, leading some to bring jobs back to the U.S. and North America By Lori Musser T he business case for offshoring production is shifting. Some North american companies are bringing production back a little closer to home, presenting intriguing opportunities to ports. Made in china Linea Peninsular’s speedy service, offered three times weekly between the Port of Progreso and the Port of Panama City, helps cut time-to-market for Mexican manufactured goods consumed in the U.S. a little more than a decade ago, U.S. companies found making the decision to offshore production to countries such as China singularly easy – low labor rates trumped virtually every other decision variable. outsourcing to low-cost locales meant lowering the overall price of goods to consumers and raking in enormous profits. the Made in China label became ubiquitous, and entire global supply chains were spawned. offshoring made sense for products whose manufacture was labor-intensive, or whose raw materials or consumers were found in other parts of the world. as long as the products were not particularly sensitive to shipping costs or the eccentricities of transport, gaining a foothold in countries with massive market growth potential, including China and India, was a win-win situation. But, in the illustrious words of Dylan, “times they are a-changin’.” the dynamics of offshore production, especially escalating wages and higher energy/transportation costs, have generated a flurry of analyses and an ever-growing wish list that favors bringing at least some production back to North america. The Wish List Tianjin Pipe Company is constructing a $1.3-billion, 600,000-ton-per-year, seamless oil and gas pipe plant alongside the Port of Corpus Christi. 10 aaPa seaPorTs MagaZine a decision to reshore (nearsource, nearshore, smartshore, inshore or, when production comes back to the home country,

Table of Contents for the Digital Edition of Seaports Magazine - Summer 2013

AA PA Headquarters
From the President’s Desk
Sourcing Near and Far
Partnering at Home to Encourage Trade Growth
Cruise Info on the Go
Community Ties
AA PA Gathers in D.C. for Spring Conference
Washington Poised to be Leader in Global Economy
Creating Agile Supply Chain Networks in Today’s Fast-Changing World
TTI: Costs of Delaying Channel Maintenance are High
Improving Safety and Efficiency through PORTS®
Seaports are at the Forefront of Export Growth
ACE E-Manifest Enhances Sea and Rail Security
Port Metro Vancouver Smart Fleet Trucking Strategy to Drive Efficiency, Reliability
The Buenaventura Container Terminal Invests $3.5 Million in Cargo Verification System
RFID Tags Promote Growth, Efficiency at GPA
Index of Advertisers

Seaports Magazine - Summer 2013