Question: Global competitive conditions driving the manufacturing location decision Wendy L. Tate ª, Lisa M. Ellramb, Tobias Schoenherrº, Kenneth J. Petersen a a College of Business Administration, University of Tennessee, Knoxville, TN 37996, U.S.A. Farmer School of Business, Miami University, Oxford, OH 45056, U.S.A. Broad College of Business, Michigan StateSee the answerSee the answerSee the answer done loadingPlease summarize below.
Show transcribed image text 100% (1 rating)Lосаtiоn, lосаtiоn, lосаtiоn is а wоrn-оut сliсhé, but оften true, in the literаture. Business site seleсtiоn is а соmрlex strаtegiс deсisiоn аnd mаy аffeсt а соmраny’s future in the lоng run. Quite оften lосаtiоn deсisiоns bоil dоwn tо саreful аnаly…View the full answerTranscribed image text: Global competitive conditions driving the manufacturing location decision Wendy L. Tate ª, Lisa M. Ellramb, Tobias Schoenherrº, Kenneth J. Petersen a a College of Business Administration, University of Tennessee, Knoxville, TN 37996, U.S.A. Farmer School of Business, Miami University, Oxford, OH 45056, U.S.A. Broad College of Business, Michigan State University, East Lansing, MI 48824, U.S.A. KEYWORDS Offshoring; Reshoring; Manufacturing location decision; Factor market rivalry 1. Reshoring Shifting global competitive conditions have spurred many companies to consider changing their * Corresponding author E-mail addresses: email@example.com (W.L. Tate), firstname.lastname@example.org (L.M. Ellram), email@example.com (T. Schoenherr), firstname.lastname@example.org (K.J. Petersen) Abstract Given today’s rapidly shifting global competitive conditions including customer location, natural disasters, currency valuation, labor and transportation costs and availability-many U.S. companies are revisiting decisions about their pre- ferred manufacturing location(s). The purpose of this research is to understand some of the trends that affect whether U.S.-based companies bring their production back to the United States or relocate it to different geographical locations (reshore). The focus is on the key factors that affect companies’ manufacturing location decisions, the impor- tance of these factors, and how the importance has changed over time. Because of the complexity involved in the manufacturing location decision, key risk factors inherent in the manufacturing decision are also assessed. Survey responses from 319 companies that currently manage offshore manufacturing plants are analyzed. Among other insights, this study found that 40% of these companies perceived a trend toward reshoring to the U.S. in their industries. The companies involved in this study also place an increasing importance on where their customers want them to locate, as well as how the location could help expand into new customer markets. These and further results and implications for U.S. manufacturing companies are presented herein. © 2013 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved. manufacturing footprint. The popular press has lauded the emergence of a reshoring trend: the relocation of manufacturing facilities from tradi- tional offshore locations to more attractive off- shore locations, or even home to the United States. This article focuses on the relocation of manufacturing capabilities back to the U.S., a phe- nomenon that has received wide attention, includ- ing a White House forum hosted by President Obama 382 on January 11, 2012. What are some of the recent developments regarding reshoring, and why have we been witnessing this trend? This research ex- plores these issues based on the results from a large- scale survey among companies operating offshore manufacturing facilities. This study is one of the first to use empirical evidence toward investigating these important developments. The goal of this article is to provide practical recommendations for managers to evaluate the reshoring decision. Those who study and practice in the field of supply chain management have focused on offshor- ing from the perspective of chronicling best practi- ces and how these can be implemented more broadly, particularly in the areas of outsourced logistics (Wallenburg, 2009) and information tech- nology (Parker