The U.S. Department of Commerce last week launched an online business tool to help manufacturing companies evaluate the hidden costs of offshoring industrial production compared with the advantages of doing business in the United States.
The Department said that its “Assess Costs Everywhere” or ACE tool, lets companies check business plans against a wide range of costs and risks in offshore production — labor costs, travel, shipping and delivery times, inventory, financing, regulatory and political stability.
Potential locations around the world are categorized for rising labor costs and intellectual property theft, among other factors. Case studies give real-world examples. There’s a toolbox for public and private business resources and an industry-developed calculator.
In a blog post that accompanied the release, Mark Doms, Under Secretary of Commerce for Economic Affairs, said the tool will help the momentum of U.S. companies that want to return production to the U.S. after experience with overseas supply chains.
“The Assess Costs Everywhere tool outlines the wide range of costs and risks associated with offshore production, and provides links to important public and private resources, so that firms can more accurately assess the total cost of operating overseas,” Doms said. “ACE also shares case studies of firms that reversed their decisions to locate offshore once the full range of costs became clear.”
Doms credited U.S. Rep. Frank R. Wolf, R-VA, a reshoring proponent, for the initiative.
“After years of outsourcing, American firms are now realizing the benefits of bringing production back to the United States,” Wolf said. “With unemployment stuck around 8 percent – and underemployment even higher – the repatriation of manufacturing is a win-win for American businesses and workers.”
“The ACE Tool highlights key factors that a business should consider before deciding where to locate its operations, and these factors demonstrate the real advantage of the U.S. as a place to invest,” Deputy U.S. Commerce Secretary Rebecca Blank said.
In line with ACE, Obama last week proposed a budget request that includes $113 million for the creation of the Investing in Manufacturing Communities Partnership, or IMCP, intended as a a multi-agency initiative to help communities attract manufacturers and their supply chains. The budget also proposed $928 million for the National Institute of Standards and Technology to continue its work to “support advanced manufacturing and research and development in cutting-edge fields.”
ACE is available at: http://acetool.commerce.gov/
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