The not-for-profit Reshoring Initiative’s free Total Cost of Ownership software helps corporations calculate the real P&L impact of reshoring or offshoring. In many cases companies will find that, although the production cost is lower offshore, the total cost is higher. TCO Estimator http://www.reshorenow.org/TCO_Estimator.cfm
Reshoring, producing more of what we consume, is a key element in solving our nation’s economic problems. Reshoring has grown rapidly since 2010. More than 200 larger companies have publicly announced reshoring actions — examples
include: Apple, Motorola, Foxconn and Lenovo. These actions inevitably impact
thousands of domestic suppliers.
In the last 10 years, new offshoring is down by 70% to 80% and new reshoring is up by 1,500%. If companies consistently evaluate all of the costs and risks, about 500,000 more manufacturing jobs would come back and the trade deficit fall by about 25%.
Current research shows many companies can reshore about 25% of what they have offshored and improve their profitability if they used TCO (total cost) instead of price to make their decision.
Readers can help bring back jobs and increase profitability by asking their companies to reevaluate offshoring decisions. Suppliers can use the TCO software to convince their customers to reshore.
You can reach Harry Moser, founder/president of The Reshoring Initiative, at harry.moser@reshorenow.org | www.reshorenow.org
I also recommend reading “ReMaking America” the AAM’s new book on manufacturing’s wealth and growth opportunities http://americanmanufacturing.org/remake-america/ Harry Moser, founder/president of the Reshoring Initiative wrote an excellent chapter on Reshoring.
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