In an effort to offset record-high trucking costs and seek out workers in a tight labor market, companies are building factories closer to their customers, The Wall Street Journal reports.
Twelve percent of U.S. manufacturers that invested in added capacity at domestic factories in the second quarter did so through building expansions, according to the Census Bureau. It’s the highest proportion of manufacturers in a decade to do so and manufacturing construction spending hit a 16-month high in September.
Companies building plants nearer to customers say the investment costs can be made up in faster turnaround times and increased orders.
The number of U.S. factories where executives said material shortages and logistics problems were limiting output was also the highest in a decade in the second quarter, according to the Census Bureau.
