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Backshoring: Just PR, or long-term business strategy?

Pam Baker | May 28, 2009
Some economists are recommending that U.S.-based companies that have sent work overseas bring it back to the U.S.

Full Petential, a maker of treats and supplements for dogs and cats, is an example of a U.S.-based company that is planning to produce more of its products at home as a result of recent pet food scares. Currently, 80 percent of Full Petential's product line is manufactured in China.

"All of the bad press on the quality of food products from China has been a bit of a problem for our company," says Dale Greenbury, Full Petential's president. "We work with a very high quality manufacturer, and I am very confident in the security of our supply chain, but I am tired of fighting the never-ending battle with consumers."

Greenbury plans to continue manufacturing a small portion of its product line overseas, but he's going to bring back the majority of the production work to partners in the U.S. or in-house. And he thinks Full Petential's top line revenue will benefit from the decision.

"Because the consumer base has been conditioned to think that 'Made in the U.S.' is somehow better quality, we would definitely be playing up the 'Made in America' angle," says Greenbury. "I definitely expect that our sales will increase dramatically with the 'Made in USA' badge."

 

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