Countries Offshoring Jobs to America?! It's True!

            So far we have seen America offshoring jobs to foreign countries, but what most people do not realize is that foreign companies have slowly begun operating in America. Many manufacturers find it beneficial to open up plants in the states for the sake of greater market shares or global exposure. One example is Swedish manufacturer Atlas Copco.         

            Atlas Copco is a leading air compressor manufacturer who has also been known to make several parts for Boeing and Samsung. In 2012, Atlas Copco expanded its presence in the United States when they bought out a drill bit manufacturing company based in Utah (Gustaffson & Stoll 2013). They also purchased a Houston based company that creates blowers and pumps (Gustaffson & Stoll 2013). As recent as these business moves were, Atlas Copco was no stranger to American business. Three years prior the Swedish firm purchased 90-year-old business Quincy Compressors (Gustaffson & Stoll 2013). It looks like Atlas is not going to stop any time soon. Atlas Copco CEO Ronnie Leten was quoted saying that competition in the U.S. in the manufacturing sector is up and running whereas China, for example, is struggling in terms of labor costs and has a weak currency (Gustaffson & Stoll 2013). The manufacturer has an alleged $5.7 million ready to spend on various expenditures including the proliferation of plants abroad (Gustaffson & Stoll 2013). How much of this will actually be invested in the states has yet to be disclosed.

            France based Airbus, probably a more recognizable business, is another contender when it comes to offshoring to the United States. In 2011, they pushed to open up an assembly plant in Mobile, Alabama, but after a long hard battle Airbus lost out to American aerospace company Boeing. Airbus looked to conduct business in America, not because the labor cost would be less, in fact it could actually be more, but to become known as an American company, as stated by aerospace analyst Scott Hamilton (Dwoskin 2013). Allan McArtor, Airbus Americas Chairman, also states another incentive for American business in being closer to the industry and their consumers (Dwoskin 2013). The company had upwards of $158 million ready for the project in addition to promising at least 1000 American jobs (Dwoskin 2013). This would be a very great thing for Airbus not only to grow as a company, but as a competitor in the aerospace industry. Working on the same soil as Boeing would be difficult for Boeing as a business, but I think with competition comes pleasing user demand. This could lead to higher quality goods because there is no room to fail. To my knowledge there has not been a decision made, but the prospect of having a U.S. based Airbus plant is not a distant dream. McArtor is confident that the massive amount of jobs will be pleasing to those in Washington and fully intends to use that card for approval in the future.

            Granted here are only two examples of foreign firms offshoring to America, I expect this number to rise in the near future. With the amount of jobs we need, I think countries with stronger economies are willing to use that to their advantage. Also, let me make this clear, America is still a leader in offshoring, I am not saying that the tables are going to make a turn soon; it is a growing trend that will need time. We just have to see where this goes.

Works Cited

Dwoskin, E. (2013, April 18). Alabama opens its wallet to lure airbus factory. Bloomberg Businessweek. Retrieved from http://www.businessweek.com/articles/2013-04-18/alabama-opens-its-wallet-to-lure-airbus-factory

Gustaffson, K., & Stoll, J. D. (2013, Feb 20). Atlas copco ceo pushes U.S. manufacturing. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424127887324048904578316051490177878.html