August 22, 2014

Skills gap tanks reshoring effort

With a movement aiming to bring manufacturing back to the U.S. from overseas production, an industry insider says he knows of attempts that yielded little success. John McKeller, who teaches supply chain management at the Wisconsin School of Business, says he’s recently spoken to Wisconsin/Minnesota firms that attempted to expand domestic operation but were unable to the find the right talent.

AUDIO: McKeller on reshoring effort (:52)

Our conversation with McKeller followed his presentation to the Madison International Trade Association (MITA). In his speech, he mentioned fields where American workers are globally competitive.

“What is a primary outsource destination for I.T. companies in India?” asks McKeller. “The United States, they’re outsourcing here. Yes, yes, we’re becoming cheaper.”

He says outsourcing is even happening domestically as a New York company will need to pay local I.T. workers a higher wage but outsourcing to a small Wisconsin town–where cost of living is not so high–becomes more appealing.

MITA’s all-day seminar focused on achieving maximum efficiencies in international business.