DRIFTING APART
HEADNOTE
MADE PRODUCTS HAVE BECOME A MELTING POT of parts and materials. The reason is offshoring, and U.S. manufacturers show no signs of slowing their spending on imports. U.S. manufacturers report on average imports comprised 11.2% of their dollars spent on materials and components in 2005, according to responses from 466 plants surveyed for the 2005 IW/MP1 Census of Manufacturers. That's up from an average imported material/component spend of 7.8% (based on 440 plants responding) reported in the 2002 IW/MPI Census.
Manufacturers are moving farther away from their partners and, in the process, becoming less integrated. BY JONATHAN KATZ
IMAGE ILLUSTRATION 1U.S.
Of course, the big story in recent years has been the China factor. Of 464 plants responding, the average dollar volume spent in 2005 on Chinese materials/components was 4.7%, up from 2.3% in 2002 when 440 plants responded. But overseas outsourcing and sourcing isn't limited to China. A great deal is taking place in South America, India and Canada, says Colin Masson, research director for manufacturing operations at Boston-based AMR Research.
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