Tag Archive: reshoring gains

Are You Reshoring?

October 5th, 2017
reshoring and manufacturing

Many U.S. companies active in China have moved some operations out of the country – 38% relocated to North America.

My APICS Inland Empire Chapter hosted a program on “Changing Trade Policies and its Effect on Reshoring” with Michele Nash-Hoff, author of “Rebuild Manufacturing – the key to American Prosperity”. And, interestingly, the Institute of Management Accountants (IMA) Orange County chose “Onshoring Profits: Manufacturing is Not Dead Yet” from a long list of topics and asked that I speak on its impact. Thus, it seems only appropriate to discuss a few common themes:

  1. U.S. firms are leaving China as conditions worsen. Actually, 25% of U.S. companies active in China have moved some operations out of the country.  38% relocated to North America.
  2. In 2014/2015, parity was reached between offshoring & returning jobs.
  3. 7 industries have reached the tipping point of returning to the U.S. and these sectors account for 70% of U.S. imports. For example, computer electronics, electrical equipment, and furniture make the list.
  4. Using purchase price or landed cost do NOT capture total cost of ownership and can lead to incorrect sourcing decisions from a financial viewpoint.
  5. 70% of executives are thinking about reshoring.

Where are you sourcing from currently? Don’t just jump on the new bandwagon of reshoring – but you should give your total cost of ownership a second look as well as dig into your customers’ expectations and sourcing impacts. You might just be surprised as to what this new view tells you!


Did you like this article? Continue reading: Reshoring Gains 


Reshoring Gains

March 30th, 2017

According to Industry Week and the Reshoring Initiative, after two decades of job losses, we have turned the corner. In 2014, we had a net gain of 10,000 reshored jobs. And, clearly, this is picking up steam especially as we are in the thick of 2017.

According to the article, South Carolina is the top winner thus far, followed by Michigan and California (surprising; however, since Boeing is the 3rd largest reshoring company, it makes sense), Kentucky and Texas. Walmart and Ford were the top two reshoring companies. There is certainly a buzz with reshoring and near-sourcing.


We’ve received calls from several potential clients who are evaluating and/or have decided to bring back manufacturing. And, according to my newly released outsourcing/near-sourcing/in-sourcing research study, 70% of executives expect near-sourcing to increase. Stay tuned for the executive summary of the results of this study. In the interim, are you evaluating what makes sense for your supply chain? And, are you preparing for growth in a flexible and agile way?

What Should We Consider and/or What Impacts Could Arise?

If you are interested in taking advantage of this rare opportunity, you must be prepared! Of course, we would not advocate hiring across-the-board in anticipation of potential new volume; however, do you know which of your customers are thinking of bringing manufacturing closer to customers? If so, will your business increase? If not, why not? What can you do to position yourself so that you reap the benefits? Do you know if this will have an impact on your mix? What is it? Start with your customer.

On the supply side, build flexibility and capabilities into your organization so that you can ramp up capacity rapidly to meet changing business conditions profitably. Get your team together and start thinking through these topics. And contact us if you’d like to gain the experience of a manufacturing business transformer who can partner with you to focus resources and attention on those priorities that will drive dramatic results.