Is "Backshoring" the Next Big Trend?

Many economists believe backshoring or reverse offshoring, as the practice is also known, will help stabilize the world's largest consumer market-the U.S.-as well as the world economies that depend on U.S. spending. They add that backshoring will also yield larger profit margins over the long term. (Pam Baker, http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9133586, 5/27/2008).

I agree that this trend could continue but eventually market competitive forces will reassert themselves and the trend will be short lived. Our capitalist society unfortunately places price and savings on products ahead of the national health of our economy. If this were not so we would not have let the bulk of our manufacturing capability move offshore in the first place. We still have the capability to produce the safest, most effective and beneficial products in the world but we cannot do it at the lowest prices when some can make a widget in SE Asia for a dollar and it costs a company in the US $5 dollars.

This issue goes beyond economics and thrusts at the heart of our national security. For every product line we pay to have built overseas we also send vital resources (not including money) to those regions that we could use here for the same purpose. More importantly, if we make tractors, trucks, computers, and the components of each overseas where do we go for these items if these countries (who are often as not unstable democracies at best) overseas decide they do not like us and shut off the flow? Where do we go for these durable goods that we as a society and a government need to maintain our way of life? Imagine South Korea telling us we cannot have item x unless we do something counter to our best interests. What do we do and where do we go? CEO’s of these companies will not have a clue and will turn to the US Gov’t for answers. Look where that has gotten us (AMTRAK, GM and Chrysler).

I am not advocating we reject our capitalistic ideals. I am a capitalist. But let’s stop blaming corporate America for the loss of jobs overseas and look at the issue through clear lenses (not rose colored) and see the problem lies with all of us here in the United States (and Canada, they have the problem as well). Produce products here, using parts from overseas if you have to but then find suppliers here even if the product costs more. The Federal government must get involved and reduce taxes for goods produced domestically or provide tax incentives repatriating production to U.S. shores. Tariffs on goods produced overseas should be used only as a last resort in order to protect fledgling enterprises.