The Offshoring of U.S. Jobs in Packaging Creative, Design, and Prepress Sectors: A Growing Trend and the Tariff Debate

In recent decades, the United States has witnessed a significant shift in its economic landscape as companies increasingly offshore jobs to countries with lower labor costs. While manufacturing has long been the poster child for this trend, sectors like packaging creative, design, and prepress—once considered immune due to their reliance on skilled labor and proximity to clients—are now following suit. As of March 13, 2025, this movement of good-paying jobs to Asia and beyond raises critical questions about economic fairness, national competitiveness, and whether punitive measures like tariffs on U.S. companies engaging in offshoring could stem the tide. Moreover, the loss of U.S. workers with decades of brand experience and industry knowledge prompts a deeper question: are companies sacrificing quality for cost savings?

The Rise of Offshoring in Creative and Technical Sectors

The packaging industry, encompassing creative design (e.g., graphic design for branding) and prepress (the technical preparation of files for printing), has traditionally relied on skilled professionals to deliver high-quality, customized solutions. These jobs—ranging from graphic designers to prepress technicians—often command salaries in the U.S. ranging from $40,000 to $80,000 annually, depending on experience and location. However, advancements in digital technology, remote collaboration tools, and the globalization of supply chains have made it easier for companies to outsource these roles to countries like India, China, and the Philippines, where labor costs are a fraction of those in the U.S.

India, for instance, has emerged as a hub for creative and technical outsourcing, with a highly skilled workforce and average salaries for graphic designers and prepress specialists hovering around $7,000 to $15,000 per year. Similarly, China’s robust printing and packaging infrastructure, coupled with government subsidies, has attracted U.S. firms seeking cost savings. The Philippines, with its strong English proficiency and low wages, has also become a go-to destination for business process outsourcing (BPO), including design and prepress tasks.

This shift is not merely anecdotal. Data from 2023 indicates that U.S. companies spent approximately $132 billion on IT outsourcing alone, with a significant portion tied to creative and technical roles that support industries like packaging. While exact figures for the packaging creative, design, and prepress sectors are harder to isolate, the broader trend of offshoring white-collar jobs suggests that these fields are not exempt. For example, prepress tasks—once requiring hands-on collaboration with local printers—are now digitized and outsourced to overseas teams who can deliver files instantly via the cloud.

Why Companies Offshore These Jobs

The primary driver of offshoring is cost reduction. U.S. companies in the packaging industry, facing pressure to remain competitive in a global market, see substantial savings by relocating labor-intensive design and prepress work to Asia. A prepress technician in the U.S. might earn $25 per hour, while their counterpart in India earns $3 to $5 per hour for comparable work. For large corporations like SGS & Co or SGK, which provide packaging design and prepress services for major brands, these savings can translate into millions of dollars annually.

Beyond labor costs, Asia offers additional advantages. Countries like China have heavily invested in printing and packaging infrastructure, making them one-stop shops for design, prepress, and production. Meanwhile, time zone differences allow for round-the-clock workflows: a U.S.-based creative team can hand off a project at

the end of their day, and an Asian team can complete it overnight. These efficiencies, combined with laxer labor regulations, make offshoring an attractive proposition.

The Loss of Experience and Expertise

What sets U.S. creative and prepress workers apart, however, is not just their skill but their deep reservoir of brand experience and industry knowledge—attributes that are difficult, if not impossible, to replicate overnight with a new offshore workforce. For instance, a U.S.-based graphic designer at SGS & Co might have spent 15 years working with a major consumer goods brand like Coca-Cola or Procter & Gamble, mastering the nuances of their brand guidelines, color palettes, and packaging trends. Similarly, a prepress technician at SGK could have 20 years of experience troubleshooting printing issues specific to U.S. machinery or substrates, ensuring flawless execution from design to production.

Offshore teams, while technically proficient, often lack this institutional knowledge. A designer in India might excel at Adobe Creative Suite but may not intuitively grasp the cultural context of a U.S. brand’s audience or the legacy of its packaging evolution. A prepress worker in the Philippines might prepare files accurately but miss subtle errors that a seasoned U.S. technician would catch based on years of working with local printers. Replicating this expertise requires extensive training and time—resources companies may not invest when chasing short-term savings.

The Impact on U.S. Workers and Customers

The offshoring of packaging creative, design, and prepress jobs has tangible consequences for American workers. These roles, while not as numerous as manufacturing positions, are often well-paying and require specialized skills—attributes that make their loss particularly stinging. As jobs disappear, workers face wage stagnation, unemployment, or the need to retrain for entirely new careers. The ripple effects extend to local economies, especially in regions with strong printing and packaging industries, such as the Midwest or Southeast.

For customers—whether brands or end consumers—the impact may be less visible but equally significant. Are U.S. companies chasing cheap labor solutions at the expense of providing their customers with the best resources? When a brand’s packaging design loses the finesse of an experienced U.S. creative team, it risks diluting its market identity. When prepress errors slip through due to an offshore worker’s unfamiliarity with U.S. standards, it can lead to costly reprints or delays. Companies like SGS & Co and SGK built their reputations on delivering top-tier service; offshoring could undermine that promise, prioritizing cost over quality.

Should We Tariff U.S. Companies That Offshore Jobs?

One proposed solution to curb offshoring is to impose tariffs on U.S. companies that relocate jobs to Asia. Proponents argue that tariffs would penalize firms for abandoning American workers, incentivizing them to keep jobs stateside. For example, a tariff could be structured as a tax on goods produced or services rendered by offshore labor, with the revenue redirected to retraining programs or tax credits for companies that hire domestically.

The logic is straightforward: if offshoring becomes less profitable, companies might think twice before moving design and prepress roles overseas. Historical precedent exists—President Trump’s tariffs on imports from China aimed to address trade imbalances and job losses, though their focus was on manufacturing rather than creative sectors. Extending this approach to packaging-related services could signal a broader commitment to protecting American jobs and expertise.

However, tariffs are not a silver bullet. Critics contend that they could backfire by increasing costs for U.S. consumers, who would ultimately bear the burden of higher prices for packaged goods. Companies might also respond by passing jobs to other low-cost regions—like Eastern Europe or Latin America—rather than bringing them back to the U.S. Additionally, tariffs risk sparking retaliatory trade measures from Asian countries, potentially harming U.S. exports and complicating global supply chains already strained by recent geopolitical tensions.

An alternative to tariffs is a carrot-and-stick approach: offer tax incentives for companies that maintain or expand U.S.-based creative and prepress teams, while imposing stricter reporting requirements on those that offshore. This could encourage domestic investment without the blunt force of tariffs. Pairing such policies with investments in education and technology—say, training programs for advanced design software or automation tools—might also make U.S. workers more competitive globally, preserving their edge in experience and innovation.

A Balanced Perspective

The offshoring of packaging creative, design, and prepress jobs reflects the broader challenges of globalization: efficiency and profit often come at the expense of local livelihoods and customer value. U.S. workers bring years of brand experience and industry knowledge that offshore teams struggle to match, raising the stakes beyond mere economics. Are companies like SGS & Co and SGK trading their competitive advantage—seasoned expertise—for fleeting cost savings? Tariffs might slow this trend, but they carry risks of unintended consequences and fail to address the root causes—namely, the vast disparity in labor costs and the relentless drive for corporate savings. A more holistic strategy, blending incentives, penalties, and workforce development, could better balance economic growth with job preservation and quality assurance.

Conclusion: Navigating the Shift with Expert Guidance

As of March 13, 2025, the debate over offshoring in the packaging industry remains unresolved, leaving consumer packaged goods (CPG) companies and retailers at a pivotal juncture. The tension between cost savings and quality preservation underscores a need for strategic clarity. This is where industry advisors like MWW Advisors (www.mwwadvisors.com) step in. With deep expertise in packaging and supply chain dynamics, MWW Advisors can help CPGs and retailers better understand how the shift to offshore labor might work to their advantage—or whether it’s just another way to deliver below-average work at the cheapest price. By analyzing the trade-offs between cost, expertise, and brand integrity, MWW Advisors offers tailored insights to ensure companies make informed decisions that align with their long-term goals. Whether embracing global opportunities or doubling down on American talent, the path forward demands thoughtful navigation—expertise that firms like MWW Advisors are uniquely positioned to provide.