Unconventional Wisdom on Staying Put Instead of Off-Shoring

This article from McKinsey Quarterly takes a look into why some companies continue to manufacture in California–one of the world’s most expensive places to do manufacturing.

It doesn’t appeal to “patriotism” (like a recently failed presidential candidate), but to the bottom line. The authors make a convincing case that for industries where speed to the customer is important, companies with a geographically compact supply chain have a big advantage over producers with low-wage overseas labor.