Use TCO as a Sales Tool Against Offshore Competitors

Sixty percent of companies make offshore-sourcing decisions based on rudimentary metrics, such as wage rate, ex-works price or landed cost, often resulting in a 15 to 30 percent understatement of actual offshoring costs. Inclusion of all relevant factors—overhead, balance sheet, risks, corporate strategy and other external and internal business considerations—provides a better determination of the…

Reshoring, FDI Trends Add U.S. Manufacturing Jobs

U.S. manufacturing continued to grow in December, but much more slowly than in previous months, according to the Institute for Supply Management. Headwinds included a strong U.S. dollar; trade disputes; dysfunction in Washington, DC, and higher interest rates. Tailwinds included the strength in reshored manufacturing jobs for the last several years. For example, manufacturing jobs via…

Advocate Says Reshoring’s Down, But Not Out

Although the pace of U.S. reshoring decelerated in 2015, one manufacturing expert says the trend is far from standing still. A recent report released by consultancy A.T. Kearney concluded that the U.S. reshoring train “has yet to leave the station.” The Reshoring Initiative (www.ReshoreNow) disagrees. “Repeated surveys by Boston Consulting Group, Plastics News/Nexant, Alix Partners…