Survey shows more manufacturers reshoring

About 73 percent of Wisconsin manufacturers surveyed in a new report say they do not source components to foreign manufacturers.

For almost three quarters of the respondents who do source components to foreign manufacturers, those components make up no more than 20 percent of the respondents’ product total costs. This indicates that the bulk of the product costs are still domestic-based costs, most likely generated by more value-added manufacturing activities.

The report, “Reshoring: Is your manufacturing business bringing operations back to the U.S.?,” was conducted by Schenck SC, a CPA and business consulting firm with offices throughout Wisconsin, including Milwaukee.

Eighty-one Wisconsin manufacturers responded to the survey, addressing such issues as factors driving decisions to reshore, how tax incentives influence the decision, and obstacles to reshoring.

Almost a quarter of the respondents either have already reshored manufacturing or they are analyzing the possibility. Although this may be interpreted as a reshoring trend, the survey also indicates 18 percent of respondents are considering increasing their foreign sourcing of product.

Respondents said customer delivery schedules and transportation costs are the leading reasons for reshoring, followed closely by quality issues.

When asked how much additional U.S. tax incentives to reshore would influence their decision, 17 percent of respondents rated that as “highly important.”

The No. 1 obstacle to reshoring, according to respondents, is higher labor costs in the U.S. The next biggest obstacles are lack of skilled labor in the U.S. and regulatory constraints in the U.S.

To view and download the complete analysis, visit

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