initiative. In 2003, about 150,000 US jobs were offshored and only 2,000 were reshored, reports Moser. In 2013, the count was neutral: about 50,000 offshored jobs
were counterbalanced by 50,000 reshored ones. “The bleeding has stopped,” Moser says. He predicts that in 2016, reshoring and foreign direct investment will have a positive balance of 50,000 jobs returned to the US. Moser has a database of hundreds of companies bringing
jobs home, among them GE, Walmart, Caterpillar, Stanley Black & Decker and Electrolux. In Canada, though offshoring has been widely practised, evidence of any reshoring taking place is only anecdotal, says Ian Howcroſt, vice-president of the Ontario division of Canadian Manufacturers and Exporters. He couldn’t point to a single concrete case of a company reshoring some or most of its manufacturing activity. However, even if there is no obvious reshoring movement in
Canada, offshoring seems to be losing momentum. The KPMG Canadian Manufacturing Outlook 2014 finds that only 14% of manufacturers planned to source from China in 2014 com- pared with 31% that had the same intention in 2013. Many reasons prompt US companies to reshore. An obvious
one, according to Moser, is that wages in the US have remained stable and in certain industries have even declined in real terms in the past 15 years, while in China they have been increasing by about 15% every year. Other reasons include regaining an inno- vation edge, a heightened responsiveness to the marketplace and viewing reshoring in terms of total cost of ownership rather than just salary arbitrage. However, reshoring is part of a larger global movement in
which “manufacturing is moving closer to demand and centres of innovation,” says Bruce Simpson, director at management consultants McKinsey & Co. Inc. in Toronto. He calls that phe- nomenon next-shoring. Next-shoring would appear to be the impetus behind Superior Radiant Products’ decision to move manufacturing capacity from China to Stoney Creek, Ont. (the only example of Canadian reshoring CPA Magazine was able to unearth). To produce a high-end, luxury outdoor heater, the company brought back about 12 jobs, out of a total of 60. “We did it for reasons of quality control and to have a greater proximity to North American markets,” says Susan Samson, sales and mar- keting communications manager.
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36 | CPA MAGAZINE | MARCH 2015
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