This article has been sitting in my brain for a few weeks now and I’m finally getting a few minutes to share it.  It involves heavy-equipment maker Caterpillar and their approach that may result in moving some manufacturing production back to the United States.  Several factors including foreign exchange pressures, quality issues, transportation costs, and inventory management are making “onshoring” an attractive concept to many companies that only a couple years ago were moving manufacturing operations overseas.

Many of these factors such as quality and logistical concerns are similar to those we looked at in make or buy situations and they come into play as well in value chain situations.  It just so happens that for these companies the decision is entirely within their own organizations but it could just as easily be about deciding to source materials locally vs. from overseas.  Some important things to keep an eye on in the coming months and years.

Caterpillar Joins ‘Onshoring’ Trend. Kris Maher, Bob Tita. Wall Street Journal. (Eastern edition). New York, N.Y.: Mar 12, 2010. pg. B.1