• Labor

• Travel

• Shipping

Cost and benefit analysis60% of companies fail to recognize

20-20% outsourcing costs, including:Customer satisfaction and retention review

• Long lead times and shipping dates

• Quality issues

• Lack of customization

Innovation assessment Separate manufacturing and

engineering negatively impact:

Bringing overseas operations back to the U.S.

20-25%of U.S. products sent offshore will eventually return

> 1/2of U.S. manufacturers are considering bringingoverseas operations back from China

15%increase in companies returning to the U.S. since 2012

2013:TERMEDThe year

of reshoring

A house hasn’t dropped on global sourcingbut it’s no Emerald City yet either

Some U.S. companies are clicking their heels and heading back home

Reduced delivery time, lower costsand improved productivity … OH MY!

Labor costs

Reduced freightcosts and improved

delivery time

Lowerwage costs

Better quality controlsand reduced intellectual

property risks

Improvedcustomer

responsiveness

Tighter, leanersupply chains

Domestic jobcreation and

economic stimulation

Enhancedinnovation

Follow the yellow brick road Critical steps for

companies considering reshoring

Sources

1. Northam, Jackie. “As Overseas Costs Rise, More U.S. Companies Are ‘Reshoring’” NPR. NPR, 27 Jan. 2014. Web. 16 Apr. 2014. <http://www.npr.org/blogs/parallels/2014/01/22/265080779/as-overseas-costs-rise-more-u-s-companies-are-reshoring>.2. Schwartz, Nelson. “More Manufacturing Coming Back to the U.S.” The New York Times, 23 Sept. 2013. Web. 16 Apr. 2014. <http://economix.blogs.nytimes.com/2013/09/23/more-manufacturing-coming-back-to-the-u-s/?_php=true&_type=blogs&_r=0>.3. “Why Are UK Firms Bringing Manufacturing Back Home?” The Telegraph. Telegraph Media Group, 01 Dec. 2003. Web. 16 Apr. 2014. <http://www.telegraph.co.uk/finance/jobs/10671738/Why-are-UK-firms-bringing-manufacturing-back-home.html>.4. Hans, Joel. “Top 13 In 2013; A Year Of Re-shoring.” Manufacturing . Net. N.p., 19 Dec. 2013. Web. 20 Apr. 2014.5. Frauenheim, Ed. “Bringing the Jobs Back Home: How ‘Re-shoring’ Is Coming to America.” Bringing the Jobs Back Home: How ‘Re-shoring’ Is Coming to America. N.p., 7 Feb. 2013. Web. 16 Apr. 2014. <http://www.workforce.com/articles/bringing-the-jobs-back-home-how-re-shoring-is-coming-to-america>.6. Denning, Steve. “Why Apple And GE Are Bringing Back Manufacturing.” Forbes. Forbes Magazine, 07 Dec. 2012. Web. 16 Apr. 2014. <http://www.forbes.com/sites/stevedenning/2012/12/07/why-apple-and-ge-are-bringing-manufacturing-back/>.7. “Reshoring's a Reality: Manufacturing's Coming Back.” Design News. N.p., 4 Feb. 2014. Web. 16 Apr. 2014. <http://www.designnews.com/author.asp?doc_id=271389>.8. The Reshoring Initiative: Welcome. N.p., n.d. Web. 22 Apr. 2014. <http://www.reshorenow.org/news/successStories.cfm>.9. Marshall, Stephen. “Reshoring - Don't Drink the Kool-Aid!” World's Largest Professional Network. N.p., 4 Apr. 2014. Web. 20 Apr. 2014. <http://www.linkedin.com/today/post/article/20140404145158-96141041-reshoring-don-t-drink-the-kool-aid>.10.Khan, Mubin S. “US Manufacturing and the Troubled Promise of Reshoring.” Theguardian.com. Guardian News and Media, 24 July 2013. Web. 22 Apr. 2014. <http://www.theguardian.com/business/2013/jul/24/us-manufacturing-troubled-promise-reshoring>.

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The great and powerful benefits of reshoring

Oil prices in China havetripled since 2000

Natural resourcesChina wages and benefits

increasing 15-20% each year

like homeThere’s no place

Virtualworkplace

weaknesses

Limited globalcollaboration

Managementpresencerequired

Trav

el

costs

Ethi

cal im

plications

Cons

umer

dem

and for “Made in the USA”International

recalls

Product safetyconcerns

Reducingcarbon footprints

Creatingdomestic jobs

Concern over foreignlabor conditions

China

U.S.Natural gas

is 75% less expensivein the U.S. than

in China

China’sLabor Rates

Chinese labor is 5 timesmore costly than in 2000

2000

2014

• Taxes

• Natural resources

• Energy

• Opportunities

• Production methods

• Innovation

• Collaboration

It’ll take more than a pair of ruby slippers to get back home

Watch out for twisters, flying monkeys and more!

Limited accessto raw materials or

foreign exports

Domesticskills gaps

Little or nodomestic incentives

or tax breaks

Facilitiescosts

Movingexpenses

Productiondisruptions

Hiring andtraining costs

Feeling like you’re not in Kansas anymore? Reshoring may be just the thing for your organization.

After all, there’s no place like home.