Companies are starting to compare the real P&L impacts of offshoring and reshoring in view of recent supply chain disruptions and Boston Consulting Group’s forecast of convergence of Chinese and U.S. net manufacturing costs by 2015. The non-profit Reshoring Initiative provides free software you can use to help companies make the comparison.
In pursuit of “lowest price,” many companies offshored more than was in their own self-interest. Boston Consulting Group’s forecast of convergence of Chinese and U.S. net manufacturing costs by 2015 suggests that the amount of work that is reshored will rise rapidly over the next few years.
To help companies make better sourcing decisions and decide to expand or locate factories in the U.S., the Reshoring Initiative provides a deep understanding of the economic trends and free objective software that helps companies calculate the real current and forecast offshoring impact on their P&L. The simple software helps the user quantify the trade-off of lower price/labor costs vs. the benefits of sourcing closer to the customer. It applies to 18 countries, and is applicable to any of the countries - not just the U.S. - as the destination country.