Poll Finds U.S. Manufacturers Become Less Competitive, and Offshoring Remains Attractive

The U.S. manufacturing industry slipped from fifth place to eighth in global cost-competitiveness, according to a new ranking from business advisory firm AlixPartners PPL.

Mexico held onto the lead spot as the lowest-cost country for outsourcing production for U.S.-based companies. China slipped from fourth to sixth place, although it improved over last year's study in many aspects, AlixPartners said. India and Vietnam retained their second and third positions, respectively.

The study appears to disprove a growing perception that increased transportation, labor and shipping costs were rendering offshoring disadvantageous and spurring a return to manufacturing on home turf. Such media reports, in fact, sparked AlixPartners' interest as it set out to examine the cost/benefit of outsourcing manufacturing from the United States to key low-cost countries, according to the report.

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