Contract electronics manufacturer expects more U.S. production

Contract electronics manufacturer expects more U.S. production

By Editorial Staff, Resource Recycling

The head of Flextronics, the huge contract producer of many electronics, says he it's now easier to justify making products in the U.S., rather than in China.

In an interview with the Wall Street Journal, CEO Mike McNamara notes that the labor differential between Asia and the U.S. is tightening. He noted that wage rates in Asia, including China, rose 20 to 40 percent in 2012. Plus, he says that a number of American cities are offering attractive tax incentives for establishing plants in their communities. Flextronics has manufacturing plants in 30 countries, with a combined 27 million square feet, including plants in a handful of U.S. states, with four million square feet. Sales are about $24 billion annually.

McNamara did admit that the potential return of manufacturing to the U.S. will be a "slow and evolving process."

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