How Will You Know When to Reshore? Five Factors to Consider
There are many factors to consider when “rebalancing your manufacturing,” reshoring some operations to the U .S. and leaving others in place to serve the growing Asian market. Several of the important factors in the original offshoring decisions have dramatically changed.
Rosemary Coates, President, Blue Silk Consulting (Q1 2014)

{{RELATEDLINKS}}China is losing some of its clout as an unstoppable manufacturing powerhouse. Rising labor and energy costs are forcing manufacturers to reconsider locating operations to even lower-cost-labor countries such as Vietnam and Indonesia. Some companies such as Apple and GE are moving production back to the United States. But how do you know when it is time to bring some of your manufacturing back? And what products should you manufacture in America?

Bringing manufacturing back isn’t as easy as you may think. There are a host of considerations and analyses that companies must perform to determine the costs and feasibility of reshoring. Several of the important factors in the original offshoring decisions have dramatically changed.

Through the use of new technologies and software and innovation, costs can be brought down to a reasonable level. Add in the reduction in global logistics costs and, suddenly, America looks pretty competitive. Factors to Consider

To rebuild a strong America, we need to bring our manufacturing underpinnings back. To do so, consider all aspects of the decision and think strategically about the future.