The American manufacturing sector will see financial and job growth over the coming months and years, according to industry executives surveyed by the Boston Consulting Group (BCG), which recently published its third annual study of the industry. As this blog reported last week, one factor that is contributing to that growth is the practice of "re-shoring," or returning facilities to the United States that had been relocated elsewhere, in many cases to China.

Sixteen percent of respondents have already re-shored at least part of their operations, and 20 percent said their companies are considering the possibility. When asked where they would base a new manufacturing plant to serve the U.S. market, the most common response was the U.S. itself, a reversal from last year, when Mexico was named the most likely destination. Half of all respondents expect to increase their American workforce by at least 5 percent within the next five years.

Part of the reason for this trend are the rising wages in China and other offshoring destinations, but many of the surveyed execs said they now consider other factors such as the affordability of manufacturing technologies, availability of skilled labor and transportation logistics.

"We have long advised companies to look at the total cost of manufacturing in the U.S. and to consider the entire supply chain — not just the obvious factors such as wages," said BCG partner Michael Zinser. "When companies take a holistic view, the U.S. increasingly comes out ahead, particularly if those products are to be consumed in the U.S."

Cost accounting software for manufacturing helps companies keep close track of their expenses, allowing them to plan their business processes with an eye toward maximizing return on investment.