Majority of U.S. Consumer products companies are outsourcing today.

According to PriceWaterhouseCoopers, Retail & Consumer Industry, more than two-third U.S. consumer product companies are outsourcing to fast developing nations to cut the costs. This is due to rising manufacturing cost, particularly energy & fuel cost and other overheads. Industry also anticipate sluggish growth in demand in coming months.

First quarter survey of consumer product manufacturing companies in U.S. shows that 53% said yes for the growth in consumer product industries whereas 67% found pessimistic. Revenue growth is expected of 6.2% over the next 12 months, far below than cross-industries growth target of 8.6%

Survey further reports that legislative/regulatory pressures would be major impediment in the growing of consumer product industries. Interest rates are also rising by 30% whereas demand is expected to be at 25%

Rising energy & fuel costs are forcing consumer products industries to outsource jobs to other fast developing countries such as India, Philippines, Pakistan and other Asian countries where nations are improving their infrastructure, labor cost is low. U.S. companies will be benefited from such outsourcing not only by reducing the costs but also bringing quality products at lower costs to its consumers.

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