Almost two-thirds of manufacturing plants (64%) increased total production output (unit volume) in the previous 12 months. One-third of manufacturers (34%) increased production output by more than 10%. While increased demand is driving increased output, it is also occurring because many manufacturers have evaluated their core competencies and found that they are willing and able to pull work back into their facilities, thereby sustaining or growing employment and/or avoiding cutbacks.
Manufacturers have worked to improve their in-house performances, prompting many to increasingly rely on their own plant’s expertise rather than that of an outsourced or offshore contactor. The MPI Manufacturing Study of U.S. plants found that an average of 7.8% of total production volume was brought back into plants from outside suppliers in the previous 12 months. While most plants reported no change to insourcing, 30% of plants indicated an increase in insourcing. Conversely, an average of 5.2% of production volume moved out to external suppliers of plants in previous 12 months; 35% of plants reported an increase in outsourcing.
For some plants, insourcing and outsourcing form a two-way street with decisions made specific to regularly changing product, capabilities, and capacity. Approximately 18% of plants reported changes to both insourced volumes and outsourced volumes in the previous 12 months. The difference for these plants moving work in both directions was an average of 6.8% of volume insourced.
 316 U.S. study participants, October 2012 through January 2013.