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.

1. • 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
> 1/2of 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>.
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Infographic created by www.4imprint.com, based on the
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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
Travel
costs
Ethical
implications
Consumerdem
and for “Made in t
heUSA”
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.