U.S. drive to build export growth is just first step, says Virtualized Logistics

Is the decline of U.S. manufacturing being reversed after a decade of mass exodus to countries with cheaper labor? Can U.S. businesses survive by using local production for the domestic market?

More importantly, can U.S. businesses grow by actually exporting their domestically-produced goods, especially to the lesser-developed countries with increased consumer consumption?

These topics are addressed by Tony Leach, Director of Virtualized Logistics in his white paper ‘Remade in the U.S. – The National Export Initiative’ http://www.virtualizedlogistics.com/en-gb/knowledge-center/white-papers/us-national-export-initiative-white-paper/

"We design supply chain solutions for global companies and have very successfully reduced both costs and time to market for companies sourcing from, for instance, China. But we are now seeing more companies reversing the flows of products which suggest imports of Western goods into China are becoming increasing important as the market for US goods increases."

Barack Obama announced the North American National Export Initiative in his 2010 State of the Union address, promising to double U.S. exports in five years.

The initiative hoped to achieve this aim via improving trade advocacy and export promotion efforts, increasing access to credit for small to medium-sized businesses and removing barriers to the sale of US goods and services overseas.

With China’s middle class expected to number 300 million by the end of this year (almost equal to the entire U.S. population) the potential for US exports is huge.

"When we talk to companies about their supply chain needs, we spend time making sure we understand exactly what drives the business, this often includes growth into new markets," says Mr. Leach. "The recommendations we make often support business to make radical changes to penetrate new markets and many businesses find that intimidating at first.

"But it is obvious that in these difficult economic times that the greater risk may be not to change – whether that is changing place of production, target markets or the way the supply chain is organised."

The National Export Initiative is just one of very many policies that the government and the business community needs to promote in order to help drive that change, says Mr Leach.