I would not count on that just yet, I don’t know how it is for small manufacturing companies, but for big manufacturing companies, I hate to say it, outsourcing is still the way to go, you need to worry about unions, their benefits, health insurance, retirement pension etc over here, you don’t have to worry about any of those in the developing countries, if you do, they would be still a lot cheaper than here. Their standard of living is simply a lot cheaper. The politicians keep telling us to keep the manufacturing jobs here in the US, but are they going to tell our competitors in Japan and Europe to do the same? There is just no other way around it, if our competitors can keep their costs lowers than us by going to China and India, we will be doomed if we don’t do the same. There has been talks about going to countries like Vietnam, but the problem is, they just don’t have the infrastructure just yet, and the country is so corrupted, you need to start hanging out money to the officials even before you leave the airports.
The pendulem swings back and forth. Been in situations where companies outbid the inhouse production of items. Then the outside mfgr could not meet production schedules, quality, etc. The purchasing dept looks like a hero till the sh-t hits the fan. Then they bring the production back inside. And it starts over.
With the cost of transportation, heavier inventories to compensate for delivery times, etc., it'll swing back toward domestic production.