Given the current economic climate, you may be hesitant about starting a staffing company. Don’ fret too much there are reasons to be bullish. Consider the boon re-shoring will offer.
The Approach of the Old Guard
The trend to outsource work abroad began in the 1970s. There was huge appeal financially in shifting manufacturing and production to lower wage nations. Now, however this is not necessarily the best choice. The assumption that it is beneficial to send manufacturing and service jobs abroad has come into question. The argument for re-shoring he return of production to the United States that had been outsourced to foreign countries is gaining significant momentum.
Offshoring Reassessed
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The cost of overseas operation for many businesses is increasing, primarily due to the fact that wages are rising.
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Foreign labor is not as cheap as it once was. Significantly, Chinese wages are on the rise. This means the manufacturing cost advantage is shrinking.
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Shipping costs are elevated. High energy prices will continue the trend.
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The pressures of environmental reputation also play a factor offshoring has a negative carbon footprint.
Companies have always desired a more stable workforce. Onshore is more stable than offshore. As the cost difference diminishes, this desire for stability is trumping the cost difference. Furthermore, the positive PR in creating “American jobs” is significant, with companies realizing the need for corporate social responsibility.
So, re-shoring is an efficient way of reducing imports, increasing exports, and regaining manufacturing jobs. In short, a good way of strengthening the U.S. economy. So what impact does this have on staffing companies?
Re-Shoring’s Benefits for Starting a Staffing Company
Starting a staffing business while re-shoring picks up steam will have positive impacts:
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With companies valuing the physical proximity of the labor force, it will allow you the opportunity to provide their staffing needs.
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Companies seeking workforce stability will rely on your staffing company to provide then with reliable sets of workers.
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The potential expansion of local talent pools means more potential workers for your staffing inventory.
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It is predicted there will be a boom in temporary labor due to re-shoring, with companies seeking flexibility and local expertise. Again, this plays very strongly into the hands of your staffing company, as you have the capability to provide this labor force.
Re-shoring hasn’t fully hit its stride yet, but it seems inevitable. Companies such as reshorenow.org are actively seeking to assist and help businesses bring production and economy back to the US. If you are contemplating starting a staffing company, re-shoring is one more reason that now may be the time.