Lansing Tops List of Midwest Cities Luring Service Jobs Back To U.S.

LANSING — A new report from the Miami-based business consulting Hackett Group found that Lansing was the top Midwest city for luring back service industry jobs that had been offshored.

Syracuse, N.Y. was No. 1 on the list, followed by Jacksonville, Fla. and Tampa, Fla. Grand Rapids was fifth, just behind Lansing.

The report ranked communities whose environments are the most supportive for service industry companies and jobs that are being “in-shored” from other countries to the United States. The study used a site selection methodology of more than 30 indicators, including business climate, workforce quality and cost, and infrastructure availability.

According to the report, “Midsized metro areas and rural communities in the United States have become viable choices for establishing service delivery centers, with advantages that include turnover rates that are significantly lower than offshore; proximity to customers and headquarters; cultural affinity; business knowledge; and reasonable real estate and infrastructure costs.”

The study found rising wages overseas, falling office rent and telecom costs in the U.S., and local tax incentives were also behind the shift back home.

Earlier Hackett studies have also predicted a shift of manufacturing jobs back to the U.S. because of the diminishing cost advantage in countries like China.

More about the study here. 

Keith Lambert, tri-county development manager for the Lansing Economic Area Partnership, the Lansing area’s economic development agency, says Lansing’s inclusion on the list “speaks to the environment we have to support these global service industry jobs that are returning from abroad; a statement further demonstrated by looking at the burgeoning insurance and financial services industries in the region.”

Bob Trezise, president and CEO of LEAP, noted the organization’s “an aggressive business attraction program underway as we look to attract businesses to the Lansing area … The Lansing area is becoming a leading Midwest hub for the insurance industry and this recent ranking validates Lansing as a top global destination for the service industries.”

For more information about LEAP, visit www.purelansing.com.

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