The Import Substitution Program (ISP) enables MEP professionals to accelerate reshoring and FDI (foreign direct investment). in their regions. Use ISP to help larger manufacturers decide to produce or source locally and SME manufacturers to compete against imports and generate work by replacing imports with local production. ISP will advance regional growth as it helps U.S. companies decide to reshore and foreign companies decide to do FDI. ISP is a unique tool that can make your region economically stronger and your center a nationally recognized innovator.
ISP will also: strengthen your contacts with larger companies; increase cooperation with EDOs; and provide engagements to increase competitiveness via lean, automation, training and supply chain optimization.
Executive Summary:Today, the new tariffs are causing companies to shift work out of China. Lower corporate taxes and regulations, higher offshore wages, consumer demand for quick delivery and an increased emphasis on skills training make the U.S. an increasingly attractive destination for that work. U.S. and foreign companies 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 sell to the best prospects among these companies. Most technology suppliers are fighting for share of the current U.S. market. ISP will expand your market by about 20%, identify prospects and provide the tools to make them into customers. ISP will provide detailed data on relevant imports by regional or national companies and provide the sales tools to convince them to reevaluate their offshore sourcing decisions. The potential is huge. Our user data suggests that about 25% of the $2.2 trillion of imports would come back if TCO (Total Cost of Ownership), instead of wage rates or purchase price, is consistently used to make sourcing decisions. Substituting domestic production for 25% of imports will increase domestic manufacturing by 20%. ISP will help you get your share or more! Program Objectives: Accelerated local reshoring and FDI: Both in-house and outsourced locally by companies that are now importing. ISP will help you accelerate local reshoring and FDI by:
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
1. You provide Inputs, as above.
2. Reshoring Initiative provides Deliverables, as above.
3. Your team and other interested parties contact the importers.
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 (supply chain optimization).
7. Identify any remaining TCO gaps vs. offshore. Apply automation, skills training, lean, assistance by local EDOs, etc.
8. Recruit new facilities by other U.S. companies or FDI (Foreign Direct Investment) to fill large regional or national supply chain gaps.
---Contact the Reshoring Initiative for pricing. Phone: +01 847 867 1144 | Email: email@example.com
*The ISP programs are available to help manufacturing companies, technology suppliers, trade associations, economic development organizations (EDOs), and Manufacturing Extension Partnerships (MEPs). This version is for Manufacturing Extension Partnerships. Similar versions for the other groups are posted here.