Reshoring Initiative Spearheads Effort To Bring Back US Manufacturing

According to Boston Consulting Group’s recent press release: “Within the next five years, the United States is expected to experience a manufacturing renaissance as the wage gap with China shrinks.”  BCG went on to say that the remaining labor cost gap will be largely overcome by the incremental costs associated with offshoring. The Reshoring Initiative provides the information and analytical tools to accelerate the manufacturing renaissance by helping companies recognize and calculate their full cost of offshoring and thus decide what products to reshore now.

Even before the current trends in Chinese wages and currency, many companies had offshored more than was in their own self-interest. In fact, Archstone Consulting’s 2009 survey showed that 60 percent of manufacturers ignore 20 percent or more of the cost of offshoring.  To help companies make better sourcing decisions the non-profit Reshoring Initiative provides free Total Cost of Ownership (TCO) Estimator software that companies can use to compare the cost of offshoring and domestic sourcing.  Suppliers can use the software to sell the advantages of local sourcing to their customers.

The Reshoring Initiative has made great progress this year:

- Seventy-five presentations already scheduled for 2011, including live, webinars, TV and radio.  Increasingly, major national trade associations are requesting to hear about reshoring.

- Release of Version 5 of the TCO Estimator, covering 17 countries and two product categories: parts and molds/dies.

- Completion of the first 2 steps of the 6-step Illinois Reshoring Initiative, supported by 40 trade associations, economic development agencies and companies.

Harry Moser, Founder and President of the Reshoring Initiative said, “Boston Consulting Group has added increased national visibility to the reshoring trend.  It is now up to the customers to reevaluate their sourcing decisions and the suppliers to aggressively promote savings from reshoring.  The Initiative is available and ready to help both groups.”

With clear evidence of the fragility of global supply chains, Chinese and other low labor cost country wages rising rapidly, the U.S. $ declining and oil soaring, this is the perfect time for U.S. companies to reevaluate their offshoring strategies and bring some of the sourcing home.

A 40-year manufacturing industry veteran and retired President of GFAgieCharmilles, Harry Moser founded the Reshoring Initiative to move lost jobs back to the U.S.  For his efforts with the Reshoring Initiative, he was named to Industry Week magazine’s Manufacturing Hall of Fame in 2010. Additional information on the Reshoring Initiative is available at or The Initiative’s 13 sponsoring associations and companies are acknowledged at that site.

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