CLAREMONT, CA -- Seventy percent of US executives responding to a survey on near-sourcing expect it to increase within the next five years.

Data were collected from August to October and the US presidential election may have an impact on this trend toward near-sourcing, the preliminary findings indicate.

Lisa Anderson, president of LMA Consulting Group, conducted the study to better understand outsourcing, near-sourcing and insourcing trends for US–based manufacturers.

"I've seen that manufacturers were already considering insourcing to the US and near-sourcing options to Mexico and other closely located countries because of the Amazon effect – the need for rapid response to customer needs," she said. "Thus, the industry was already moving in that direction prior to the US presidential election. However, since tariffs are likely to increase and bad publicity could easily occur, the impact will probably steer some of those companies towards the U.S. instead of Mexico.

"In addition to the Amazon effect, I've witnessed a number of companies who poorly planned their outsourcing and off-shoring efforts," said Anderson. "They now have experience and data to make better decisions. Since the total cost of importing non-commodity products from Asia is equalizing with what can be achieved in the US or Mexico, near-sourcing becomes a no-brainer when the customer and cash impacts are added to the cost equation. It is also far easier and more successful to communicate and manage when manufacturing is closer to the markets served."

Previous studies by LMA Consulting noted continued concerns of the lack of skilled resources to fill new manufacturing jobs.

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