While doing some research on labor practices for my American Studies class, I came across this article from NPR about outsourcing. It stated, that even though many people believe outsourcing is a way to save money (less labor costs), other complex costs can really add up. One of these costs is transportation. According to the article, natural gas is much cheaper in the United States. The price for the natural gas to run the factory overseas, in addition to transporting it across the world would be as much as four times more expensive than the cost of transportation across the United States.While the prices for manufacturing goods in other countries may still be cheaper than producing them in the US, it is still interesting to take into consideration how other factors besides labor costs may affect the price of production. Besides reducing the cost of transportation, manufacturing products in the US also has environmental benefits, from the decrease of pollution. There is also a sense of patriotism involved with the label "made in the USA" I will be honest in that I do not own products that are only made in the United States. However, since reading this article, I started to think that "insourcing" would show that the US does not need to rely on other countries to make our goods; we are self sufficient.
I am curious to know what your thoughts are about the pros and cons of outsourcing. Do you think that more products should be made in the US? Or do you think that companies should save money and continue to outsource? Please comment below.
