US Textile Plants Return, With Floors Largely Empty of People

Low-cost labor, first in the southern region of the United States and later in developing nations, lured textile mills away from manufacturing centers of New England. Globalization makes the industry turn full circle. Textile mills are up and running once again in the United States, but with fewer jobs because of automation. Stephanie Clifford of the New York Times writes about the return of the textile industry as assessed by one company founder: “American manufacturing has several advantages over outsourcing. Transportation costs are a fraction of what they are overseas. Turnaround time is quicker. Most striking, labor costs — the reason all these companies fled in the first place — aren’t that much higher than overseas because the factories that survived the outsourcing wave have largely turned to automation and are employing far fewer workers.” Some companies worry about workplace safety and liability in countries with fewer regulations, like Bangladesh. According to one survey, nearly half of all US manufacturers with overseas operations have already started or contemplate returning some operations to the United States. – YaleGlobal