Why Should You Consider Reshoring Your Manufacturing Business?
The founder of the Reshoring Initiative, Harry Moser, wrote an article last year for Industry Week detailing all of the benefits companies could have if they move producing and sourcing products to the US shores. He hits costs over time right away. Localization, producing near the consumer, often reduces total cost due to shortening supply chains and contributing to a lean and agile strategy. The savings on non-manufacturing costs as a result of producing in the market in which the products will be sold can often overcome a 15-20% manufacturing cost gap caused by an 80% wage gap. Manufacturing companies especially are seeing the value in reshoring thanks to localization. Moser cites the following reasons that reshoring is looking more attractive to manufacturers: rapidly increasing emerging market wage rates, low US energy costs, productivity gains, and the economic benefits of localization [...]