NEW YORK--(BUSINESS WIRE)--Panjiva, the B2B platform powering the business of global trade, today unveiled Manufacturing in the U.S.—Movement or Myth?, a report that details key drivers, deterrents and other factors that impact companies’ decisions to source goods from U.S. manufacturers. Based on a survey of sourcing professionals, the report found that the majority (75 percent) of buyers currently source goods from the United States and that the ability of U.S. manufacturers to turnaround and deliver goods faster than overseas manufacturers was the quality that most made the United States a desirable sourcing destination. However, most buyers (81 percent) cited a single factor that limits how much their company sources from the United States: high costs.
“High costs are clearly holding back U.S. manufacturing, which is an unfortunate scenario given that it is largely out of the control of the manufacturers themselves”
The political focus on manufacturing and an increase in the frequency with which companies are announcing plans to manufacture in the United States have led many to suggest a possible U.S. manufacturing resurgence. However, Panjiva found little confidence among the sourcing community that we will see a significant resurgence in U.S. manufacturing. In fact, more than a third of buyers (36 percent), who are on the front lines in making sourcing and purchasing decisions such as where to source products from and which suppliers to work with, anticipated a decline or stagnant activity when asked to assess the long-term outlook for manufacturing in the United States.
Other key findings from the report include:
- Working conditions not driving buyers to consider U.S. suppliers: only 4 percent of buyers cited concern about working conditions at factories outside the United States as a driver of efforts to increase the amount of goods sourced from the United States, despite many companies’ outrage following high-profile factory fires and a building collapse in Bangladesh.
- Visibility into U.S. manufacturers’ capabilities may limit their ability to buy: Despite nearly a third (29 percent) of buyers citing better visibility into capabilities of American manufacturers and suppliers as a factor that would increase their likelihood to source from the United States in the future, more than 60 percent of buyers admit to having limited, minimal or no visibility into such information.
- There is lack of consensus on whether consumers will pay more for American-made goods: more than half of respondents (52 percent) believe consumers will pay considerately or slightly more for American made goods, while the other half (48 percent) remain adamant they will not pay more. This suggests that strong evidence of consumers’ willingness to spend more on Made in America products may lead to a greater interest among buyers in sourcing from the United States.
“High costs are clearly holding back U.S. manufacturing, which is an unfortunate scenario given that it is largely out of the control of the manufacturers themselves,” said Josh Green, CEO, Panjiva. “However, this predicament underscores the need for manufacturers to focus not only on what they do very well, but also what buyers look to them for: the ability to deliver goods in a much shorter time period. With that, there must also be a concerted effort to raise visibility of all that U.S. manufacturers offer beyond strictly rapid-response manufacturing. This is at the heart of Panjiva’s mission and a problem we’re committed to helping solve.”
To download the complete report or obtain details on the survey’s methodology, visit http://panjiva.com/about-panjiva/global-trade-data/manufacturing-in-the-us.
Panjiva powers the business of global trade. The company’s B2B platform combines content and communication to fuel 21st century trade by enabling serious buyers and sellers to connect with one another quickly and easily. By combining diverse data sets that enable decision making with robust technology that makes the process of analyzing the data more efficient, Panjiva provides an unmatched level of insight on the companies, products and trends shaping global trade. With more than a million unique online visitors each month and 5,000 paying users across a wide variety of industries, Panjiva is a trusted resource to gain insight into, and make contact with, more than 6 million companies that make 35 million unique products. Panjiva was founded by CEO Josh Green and CTO James Psota. Panjiva has received equity investments from Battery Ventures and Harrison Metal. For additional information, visit: http://panjiva.com.