The Viability of Reshoring Manufacturing to the U.S.
December 05, 2018 / Carter Smyth & Gustavo Huber
There has been much reporting done on the “trade war” with China; that this is America’s chance to bring manufacturing back to the U.S. Though tariffs and protectionism may seem like an enticing case for “reshoring”, the arguments are often overly simplified, interlaced with nostalgia for postwar U.S. manufacturing dominance and its trickle-down economic growth. Tariffs can disappear as quickly as they appear, so we suggest that reshoring decisions be based on fundamental factors that are likely to remain consistent for the longer term.
Understanding the 360-degree view of your fully-loaded production costs is the first step to evaluating whether reshoring your manufacturing is going to net out. We live in the age of the subassembly, as such, viability of moving one portion of your production requires deep knowledge of how interdependent your ecosystem of suppliers, supply chains and related logistics is. Discovering, documenting, and ultimately dup...