MFGWatch Survey: Backshoring Trend Accelerates, Supply Disruptions Persist, Employment Flat With Small Manufacturers

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A remarkable 44 percent of Large North American manufacturers say they’ve experienced a significant disruption to their supply chain that has forced them to select or contact alternative supplier sources, compared to 35 percent in the previous quarter. This likely - at least in part - attributable to risks inherent in managing production across extended supply chains.

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13 percent of Large North American OEMs said they’ve returned some production to North America from low-cost countries in the first quarter of 2010. Nearly one-third (31 percent) said they will be researching bringing production into or closer to North America in the second quarter of 2010.

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A total of 28 percent of Large North American Sourcing Manufacturers indicated that they added to employment for the period, compared to 16 percent in the first quarter of 2010 – an improvement of 12 percent. 10 percent stated they’ve reduced staff at their companies, a number that's down from 21 percent in the previous quarter. For the second straight quarter, well over half (62 percent) said they maintained employment levels.

SMMs have not seen the same positive employment numbers as their larger brethren. While they in fact added to their employment roles in the latest quarter - 23 percent compared to 11 percent in the previous quarter - a full 21 percent say they’ve eliminated jobs at their shops and plants.

For more on the Q2 2010 MFGWatch Survey results, here's a link to the News Release, or you can watch the Webinar (from May 5th, 2010) below:

MFGWatch Results Webinar - Q2 from MFG.com on Vimeo.