Phorgy Phynance

The new corporate trend: “onshoring”

with 2 comments

Ha! What did I tell you? It is wayyy past my bedtime and I should be sleeping (especially since I’m sick and feel like I’ve been run over by a truck), but just stumbled on an interesting article from one of my favorite economic development blogs: Design Nine. He points to an article in the journalgazette.net.

Recall that in the midst of all the market doom and gloom, I recently said:

I’m actually ironically optimistic about the outlook for suburban and rural economic development. A weaker dollar will make outsourcing less attractive. That will bring manufacturing jobs back home. I can imagine a boon in suburban and rural development. Just imagine if communities developed decent broadband via fiber-to-the-home/business. Suddenly, there will be attractive jobs and living standards in affordable places.

I admit that the quote is a bit misleading because Andrew Cohill has influenced the way I think about things, but still timely I think. Here is an excerpt from the article:

Small-town America: The new Bangalore?

[snip]

Onshoring, in fact, is becoming trendy.

Some U.S. companies recently have pulled back from India to set up shop in rural areas where access to high-speed broadband connections isn’t the problem it was just a few years ago and where lower real-estate prices and wages are attractive.

Note that the key to onshoring is an investment in telecommunications infrastructure. In particular, fiber-to-the-home. It is quite sad to see so many municipalities rest their hopes on wireless broadband. That will only end in tears as the reality of wireless broadband becomes apparent. Any community that is not investing now in fiber will lose out on an important opportunity that is now beginning to present itself: onshoring. As Andrew will tell you more eloquently than I could, an intelligent investment in a communities future MUST involve a combination of both fiber and wireless and I would put wireless as a distant second. I can explain in gory detail why wireless will fail if you like (I did my PhD in the subject), but for now need to hit the sack.

Go onshoring! Go USA!

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Written by Eric

December 4, 2007 at 12:50 am

2 Responses

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  1. […] Email Me « The new corporate trend: “onshoring” […]

  2. […] Aside from this slight disagreement, I agree with his analysis of the fall out, i.e. USD falls, EUR gains, OIL rises, stocks rally (stocks always rally) temporarily only to fall hard, gold rises. Stocks that I think will do well (although I’m no investor) longer term will be those associated with “onshoring“. […]


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