July 2017 eNewsletter

July 20, 2017

Smarter Buying and Selling

Would you like to win a $60M order vs. lower priced Asian competitors? Morey Corp did just that. With the help of the Reshoring Initiative, electronics manufacturer Morey Corporation used the Total Cost of Ownership Estimator® to show the customer that although Morey’s price was higher, its TCO was lower, and won the order.

TCO often reveals that price understates actual offshoring costs by 15 to 30%. Subsequently, many companies can benefit by using TCO as a sales tool, helping their customers see the cost advantage of domestic offerings vs. lower priced imports.

Harry Moser provides a detailed discussion on how sales teams can use TCO to compete with offshore competitors in Assembly Magazine’s, “Using Total Cost of Ownership for selling vs. imports.”

Additionally, understanding the price and TCO gaps vs. imports can help the U.S. evaluate and quantify areas where the international playing field is not level. The Reshoring Initiative and Plante Moran are launching the “Manufacturing Reshoring Survey” to quantify price and TCO gaps, and in doing so, identify the national and corporate policy changes needed to make reshoring viable for your company. We ask for your participation in the survey: Tell Washington what policy changes would motivate you to reshore.

In the News

Walmart continues its push to boost U.S. manufacturing jobs

Fox News describes the progress and the new products that are being added: “Hundreds of U.S. entrepreneurs make pitch to Walmart.”

No laughing matter

Bloomberg’s recent video explains how the U.S. defense sector is left vulnerable by having to rely on overseas suppliers. See: “Why 'Made In America' Is A Matter Of National Security.”

Reshoring Initiative 2016 Data Report: The Tide Has Turned

Reshoring plus FDI were up over 10% in 2016, tying the 2014 record. Last year was also the first in decades to record positive net job flow from offshore. The full report details the breakdown of the trends by industry, region and driving factors. You can use the data to:

See how much is being reshored in your industry and by your customers.
Understand the reasons for reshoring. Be sure your sales arguments demonstrate that you offer benefits not attainable offshore.
Identify the states where the reshoring is hottest. Make special sales efforts there.

Updates From SelectUSA 2017 Event

More than 2,800 attendees, including 1,200 international company representatives attended the Commerce Department’s SelectUSA 2017, which is an event focused on raising the rate of FDI (Foreign Direct Investment) into the U.S. Speakers included Commerce Secretary Ross, Labor Secretary Acosta, Treasury Secretary Mnuchin and the GM and GE CEOs.

Commerce Secretary Wilbur Ross at Select USA 2017

National Reshoring Awards

The submission date for National Reshoring Awards recognizing successful reshoring of metal products, parts or tooling is September 1st. If your company produces for its own use or for sale to a customer company, a metal item that had previously been supplied from offshore, then it is eligible for the reward. Please find details and submit your entries here.

The Smart Supply Chain

A new report explores how to enhance innovation, communication and trust in the manufacturing ecosystem, generally resulting in reshoring. Download the pdf here.

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