Despite cutting costs in 2009, many companies in Germany and the rest of Europe appear to be less interested in outsourcing, and some companies in Germany are even bringing manufacturing back home.
In 2009, three German companies continued to outsource work abroad for every one company that brought formerly outsourced jobs home. In 2003, six companies were sending jobs overseas for every one returning jobs home. An October survey by Cognizant found that 40 percent of European companies cut back outsourcing plans in 2009. (Newsweek, 1/11/10)
This could be evidence of slackening demand or anticipated slackening demand. Or it could be a nationalist shift in attitude about production and labor. But, either way, this is a negative for shippers.
Eric Zavolinsky
