Reshoring [INFOGRAPHIC]
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• Labor • Travel • Shipping Cost and benefit analysis 60% 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 > 1/2 of U.S. manufacturers are considering bringing overseas operations back from China 15% increase in companies returning to the U.S. since 2012 2013: TERMED The year of reshoring A house hasn’t dropped on global sourcing but it’s no Emerald City yet either Some U.S. companies are clicking their heels and heading back home Reduced delivery time, lower costs and improved productivity … OH MY! Labor costs Reduced freight costs and improved delivery time Lower wage costs Better quality controls and reduced intellectual property risks Improved customer responsiveness Tighter, leaner supply chains Domestic job creation and economic stimulation Enhanced innovation 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>. www.4imprint.com Infographic created by www.4imprint.com, based on the Reshoring Blue Paper ® . Download Blue Paper at: http://info.4imprint.com/bluepapers/reshoring/ You may reproduce and distribute this infographic in its entirety. You may not create derivative works. (Licensed under the Creative Commons: http://creativecommons.org/licenses/by-nd/3.0/) The great and powerful benefits of reshoring Oil prices in China have tripled since 2000 Natural resources China wages and benefits increasing 15-20% each year like home There’s no place Virtual workplace weaknesses Limited global collaboration Management presence required T r a v e l c o s t s E t h i c a l i m p l i c a t i o n s C o n s u m e r d e m a n d f o r “ M a d e i n t h e U S A ” International recalls Product safety concerns Reducing carbon footprints Creating domestic jobs Concern over foreign labor conditions China U.S. Natural gas is 75% less expensive in the U.S. than in China China’s Labor Rates Chinese labor is 5 times more 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 access to raw materials or foreign exports Domestic skills gaps Little or no domestic incentives or tax breaks Facilities costs Moving expenses Production disruptions Hiring and training 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.
description
There’s no place like home. That’s what companies like Apple®, Ford®, Whirlpool® and others are discovering. The trend is a growing number of organizations clicking their heels and bringing overseas operations back to the U.S. According to Harold Sirkin, a senior partner from the Boston Consulting Group®, in the upcoming years 20 to 25 percent of products that were sent offshore will eventually return to the United States.1 Even more telling, research shows that more than half of executives at manufacturing companies with sales exceeding $1 billion either plan to, or are thinking about, bringing overseas operations back to the United States from China. Since 2012, there’s been roughly a 15 percent increase in companies that return to the U.S.
Transcript of Reshoring [INFOGRAPHIC]
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• 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>.
www.4imprint.com
Infographic created by www.4imprint.com, based on the Reshoring Blue Paper®. Download Blue Paper at:http://info.4imprint.com/bluepapers/reshoring/
You may reproduce and distribute this infographic in its entirety. You may not create derivative works. (Licensed under the Creative Commons: http://creativecommons.org/licenses/by-nd/3.0/)
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.
