On 12/2/11 our blog introduced you to Reshoring America – an initiative focused on bringing manufacturing back home. We shared with you some of the story of Harry Moser, founder of The Reshoring Initiative. And we provided a link to his free tools for anybody who competes against low cost nations.
Did you know that 60% of OEM’s and manufacturers use “rudimentary total cost models” and ignore 20% of the costs of offshoring? According to the Archstone Consulting survey this is a fact. The Reshoring Initiative states that if companies are not accounting for 20% of their costs to offshore then maybe offshoring is not the best or most economical decision to be made. It seems to me that this type of decision is too important to leave out some possibly critical data.
The Reshoring Initiative has developed a Total Cost of Ownership estimator that is designed to help OEM’s and manufacturers compare the TRUE costs. And it is FREE!!! Job shops and manufacturers who supply OEM’s – like Remke – can use this FREE software to make a case for local sourcing, or not. But it does seem that Mr. Moser’s program can help companies get the real story so that the best decision can be made. Here’s the link: www.reshoringmfg.com
I wonder how many companies that have moved production overseas would not have done so if they had used the tools from The Reshoring Initiative? Of course we’ll never know BUT YOU CAN use this software to demonstrate the cost effectiveness of keeping production here in the USA. Sometimes the numbers won’t support keeping work here but sometimes they will. And if your company (or the company of a friend or relative) has lost business to China or other low-cost nations then using these free tools makes all the sense in the world. Wouldn’t it be great to bring some jobs back to the USA because the numbers show that to be the best decision? Or even better – to not lose those jobs in the first place? You bet.
Creating more jobs in America is a big deal and The Reshoring Iniative should be part of the solution.
Did you find this information useful? Do you know somebody who could use information? Please share this blog so more folks will know about The Reshoring Initiative. And thanks for subscribing to EVERYTHING’S CONNECTED. See you on January 20th!
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