Import Substitution Program: a Sales Tool for U.S. Manufacturers*

A way to sell more and strengthen U.S. manufacturing

Purpose:

The Import Substitution Program (ISP) creates opportunities for U.S. suppliers to compete more effectively vs. imported products and thus reshore. The ISP identifies and qualifies major importers of products you produce and helps you to convince them to reshore and buy from you instead. ISP is a unique tool that can become an important part of your sales and marketing effort. Start ISP today to obtain current business or to fill the valley when the U.S. economy next slows.

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 suppliers are fighting vs. domestic and foreign competitors 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 domestic sourcing by companies that are now importing. ISP will help you obtain orders by:

  • Identifying the product categories in which you are most competitive.

  • Identifying the leading regional or national importers of these products.

  • Providing you the tools to convince these companies to reshore and buy from you.

  • Identifying domestic supply chain gaps that you could fill.

Your Input:

Your input on some of these will help us to customize our deliverables for you.

  • A clear definition of your geographic sales region: state(s), counties or mile radius from a specific location.

  • Your choice of product categories.
  • Who are the largest manufacturers to which you would like to sell?

  • Who are your largest offshore competitors?

Our Deliverables:

The Reshoring Initiative's Import Substitution Program will help you achieve the Program Objectives, above.

Level I: The Reshoring Initiative will provide data on relevant annual imports:

  • For targeted products: Ten HS codes and/or product descriptions.

  • By targeted companies: Ten regional importers.

  • From offshore competitors: Ten offshore suppliers.
  • Supply chain gaps: Up to five.

Data will include for each product category:

  • Company names and addresses.

  • Number of containers of each product imported by each company.

  • Approximate $ value.

Also:

  • Standard written instructions for implementation including use of our TCO (Total Cost of Ownership) Estimator when selling to the companies.
    • Ten hours of remote support including customized training webinar.

    • Archived training webinar.

    • Phone and email support.

    Level II: Additional help via phone and email.

    Level III: Field support

    • On-site help, training and presentations, e.g. using our TCO Estimator as a sales tool.
    • Customized implementation plan.

    • Joint articles on your past and future reshoring successes.
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    Contact the Reshoring Initiative for pricing.

    Phone: +01 847 867 1144 | Email: harry.moser@reshorenow.org

    *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 companies. Similar versions for the other groups are posted here.