The Import Substitution Program (ISP) enables economic development professionals to replace imports with local production by helping U.S. companies decide to reshore and foreign companies decide to do FDI (foreign direct investment)in your region. ISP is a unique tool that can make your region economically stronger and your organization a nationally recognized innovator.
The impact of offshoring on the U.S. economy has been significant. Jobs offshored to China and elsewhere have diminished American employment opportunities, helped contribute to wage erosion and had a dramatic and negative effect on workers and the economy in every state. Communities have lost, on average, 27% of their manufacturing workforce since 2000. Sixty-three percent of the job loss is due to offshoring of jobs.
Today, especially with the Tax Cuts and Jobs Act in effect, U.S. and foreign companies are reevaluating their facility plans and considering increasing U.S. investment and shifting manufacturing to the U.S. They are seeing the benefits of proximity, i.e. producing in the market, especially when the home market is the U.S., still the world's largest. ISP will help you identify and attract the best opportunities for your region.
The Import Substitution Program (ISP) is a customized action plan that is a catalyst for FDI and reshoring. Your ISP will be custom-built to: help larger OEMs in your region decide to produce or source more locally; help local companies compete against imports; and attract FDI. ISP will help strengthen your region with minimal incentives, fortify local supply chains around OEMs and bolster your skilled workforce program.
ISP will provide detailed data on imports by regional companies and assist them in reevaluating offshore sourcing decisions. On-site help and training are also available. Select the support level that is right for you.
ISP could make your region a model for the rest of the country.
Your input on some of these will help us to customize our deliverables for you.
The Reshoring Initiative's Import Substitution Program will help you achieve the Program Objectives, above.
Level I: The Reshoring Initiative will provide data on annual imports into the region:
Data will include for each product category:
Level II: Additional help via phone and email
Level III: Field support
Level II: Additional remote support, 20 hours: $2,000Level III: Field Support:
Note: Consider inviting the local suppliers to help fund the programImplementation Outline:
1. You provide Inputs, as above.2. Reshoring Initiative provides Deliverables, as above. 3. Your team and other interested parties contact the importers. 4. Educate the importers with the Reshoring Initiative's free Total Cost of Ownership Estimator® (TCO) to reevaluate offshoring vs. reshoring. Use our program TCO - Getting a Company Started. 5. Help the importers see that there is often no or only a small TCO difference when they shift to local production or sourcing. 6. For work that the importer decides to outsource domestically, introduce the importer to local suppliers. 7. Identify any remaining TCO gaps vs. offshore. Apply: automation, skills training, lean, ED assistance. 8. Recruit new facilities by other U.S. companies or FDI (Foreign Direct Investment) to fill large regional or national gaps.
For decades companies have been chasing cheap labor offshore and then importing products to sell in the U.S. market. Now is a good time to reevaluate the choice of domestic vs offshore production. Favorable trends include: lower corporate tax rates and regulations; better understanding of the costs of offshoring; increased U.S. competitiveness; new technology; and consumer demand for customization, quick delivery and Made in USA.
Some companies feel the conditions are already right to consider U.S. manufacturing due to global economic conditions and new technology. Others are now considering a U.S. location as part of a management strategy due to lower corporate tax rates. According to research by the World Bank, new technologies are fueling domestic manufacturing and sourcing. As labor begins to represent a smaller share of total costs, companies that once offshored due to inexpensive labor costs are beginning to favor close proximity to the markets they serve.
The potential is huge. Our user data suggests that about 25% of offshored work would come back if TCO (Total Cost of Ownership), instead of wage rates or purchase price, is consistently used to make sourcing and siting decisions. Substituting domestic production for 25% of imports would increase domestic manufacturing by about 10%. It is time to obtain that growth in your region!- - - Reshoring Initiative | 21110 Buffalo Run | Kildeer, IL 60047 USA Phone: +01 847 867 1144 | Email: firstname.lastname@example.org