QUESTION:

You are an international manager for a U.S. based company that outsources manufacturing to China. The United States is once again a 'rising star' of global manufacturing thanks to falling domesticnatural gasprices, rising worker productivity and a lack of upward wage pressure and the encouragement of the US President to move manufacturing back to the US. While Chinaremains the world's No. 1 country in terms of manufacturing competitiveness, its position is 'under pressure' as a result of rising labor and transportation costs and lagging productivity growth. Also, the impact of the recent pandemic is such that companies are now wary of overly depending on China for its supplies.

In the context of the worldwide recession expected as a follow on of the COVID 19 pandemic and the pain felt in the world by being dependent on China as the world's factory and the negative impact on supply chains during the COVID lockdown, what are your recommendations to the US Company with outsourced manufacturing to China? Should it move its manufacturing back to the US? Should it continue to use China as a key supplier? Any other options? Identify pros and cons of options available and give your recommendations.