Reshoring America’s Jobs are current buzz words being thrown around and for good reason. It is the practice of transferring your business operation that was overseas and back to the country it was originally located. The new Reshoring Initiative providing $100 million dollars to develop apprenticeship programs, legislation introduced to help close trade deficit, and a Reshoring Initiative president has been appointed to the Department of Commerce Investment Advisory Council. All big steps needed to move this initiative forward.
Back in the 1960s (1) you saw a trend of Offshoring begin within companies, but wasn’t under heavy public scrutiny until the 1970s. The thought process was that Offshoring would grant the companies cheaper labor and lower production costs, not to mention tax breaks and financial incentives. While some of these things may have occurred, it wasn’t without its flaws. Some of the disadvantages were quality control problems, time zone adjustments, language barriers, and effects on jobs where the company was originally based. These issues may have had an effect that led to the new Reshoring Initiative.
The Great Recession of 2008 forced companies to find alternative ways to cut costs by reshoring their businesses to the United States to create jobs for unemployed Americans. Since then, Reshoring has become a political priority with the SelectUSA program being started in 2011 (2) and the urging of major corporations to lead the change by setting the example.
Is your company looking to Reshore or would like some more information about it? Visit http://www.reshorenow.org and see how they can assist your business. They provide various resources like the ones listed on their site below.
The Reshoring Initiative is focused on Reshoring America’s Jobs which is helping companies shift collective thinking from “offshoring is cheaper” to “local reduces the total cost of ownership.” We do this by assisting manufacturers and suppliers in making sourcing decisions by providing valuable tools and resources including:
* Total Cost of Ownership Estimator® — an intuitive online calculator for determining a company’s profit and loss impact of reshoring vs. offshoring
* Case Studies — a collection of reshoring success stories from manufacturers, technology suppliers, and distributors
* Reshoring Library — an online searchable database derived from over 2,900 articles on reshoring
* Webinars, news items and presentations — archives of past Reshoring Initiative events and articles you can use to inform customers or employees
* Personalized Help evaluating the offshore/reshore sourcing decision