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Reshoring of American manufacturing companies from China

Author

Listed:
  • Weifeng Zhai

    (HeBei Normal University)

  • Shiling Sun

    (HeBei Normal University)

  • Guangxing Zhang

    (HeBei Normal University)

Abstract

This paper investigates the industry distribution of reshoring companies and motivations for reshoring, based on 139 cases for reshoring of American manufacturing companies from China, from the beginning of 2009 to the half of 2015. The quality, instead of the rising labor cost, is the primary single factor urging the relocation. Of course, the cost as a group factor is still the most important motivation for reshoring. Both two-dimensional contingency table analysis and hierarchical loglinear analysis with model selection show that the companies reshored their business operations in different industries for the same motivations. The regression analysis indicates that the most likely reshored business activities are the ones serving the US market.

Suggested Citation

  • Weifeng Zhai & Shiling Sun & Guangxing Zhang, 2016. "Reshoring of American manufacturing companies from China," Operations Management Research, Springer, vol. 9(3), pages 62-74, December.
    • Handle: RePEc:spr:opmare:v:9:y:2016:i:3:d:10.1007_s12063-016-0114-z
    DOI: 10.1007/s12063-016-0114-z
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    7. Silvia Cosimato & Roberto Vona, 2021. "Digital Innovation for the Sustainability of Reshoring Strategies: A Literature Review," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    8. Amy V. Benstead & Mark Stevenson & Linda C. Hendry, 2017. "Why and how do firms reshore? A contingency-based conceptual framework," Operations Management Research, Springer, vol. 10(3), pages 85-103, December.
    9. Pappas, Dimitrios & Chalvatzis, Konstantinos J. & Guan, Dabo & Ioannidis, Alexis, 2018. "Energy and carbon intensity: A study on the cross-country industrial shift from China to India and SE Asia," Applied Energy, Elsevier, vol. 225(C), pages 183-194.
    10. Piatanesi, Benedetta & Arauzo Carod, Josep Maria, 2019. "An Analysis about reverse offshoring," Working Papers 2072/376030, Universitat Rovira i Virgili, Department of Economics.
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    12. Stentoft, Jan & Mikkelsen, Ole Stegmann & Jensen, Jesper Kronborg & Rajkumar, Christopher, 2018. "Performance outcomes of offshoring, backshoring and staying at home manufacturing," International Journal of Production Economics, Elsevier, vol. 199(C), pages 199-208.
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