Though we're slowly pulling out of the recent global economic crisis, small business owners have it tough at the moment. Because customers are making cutbacks, demand for products and services is low, and because suppliers are making cutbacks too, manufacturing costs are high. All this creates something of a downward spiral situation for the small business owner struggling to keep his or her head above water. Increased production costs and reduced demand means that to operate at a profit, a company's wares must be sold at a higher price, which reduces demand, which increases manufacturing costs...You get the idea.
Source: https://www.sooperarticles.com/business-articles/how-does-outsourcing-fit-into-modern-business-1736929.html