Nearshoring, reshoring, and insourcing: Moving beyond the total cost of ownership conversation

As firms from across all manufacturing sectors are rethinking their outsourcing and offshoring strategies, there is the potential for a manufacturing renaissance in the U.S. The findings from this case study suggest that the current manufacturing relocation shift is not perceived by manufacturers as a long-term business strategy (as outsourcing has been). As such, the results suggest that manufacturing relocation decisions based exclusively on models such as total cost of ownership (TCO) will not deliver anticipated near-term costs savings. In addition to TCO, firms must have access to information concerning the complexity of the outsourced manufacturer’s manufacturing and supply chain processes in order to fully evaluate the ‘as-is’ outsourced function against ‘to-be’ manufacturing relocation opportunities.