How Much Does It Cost to Manufacture Overseas Versus at Home?

URLhttps://insight.kellogg.northwestern.edu/article/h
SourceKellogg Insight
Date Published07/10/2017
Author NameTheo Anderson
Mentions specific company case(s) of reshoring, kept from offshoring, or transplantYes

Additional Reshoring Information:

Company/Division name Lenovo
Type of work Manufacturing
If manufacturing, is the company an OEM? Yes
Reshoring category:Foreign Direct Investment
Year reshoring implemented or to be implemented:2013
Country(ies) from which reshored:China
State(s) reshored to:NC
If relevant, work nearshored to:-
Industry(ies):Computer & Electronic Products
Product(s) reshoredSmartphones, desktops, servers, notebooks, tablet
What non-domestic negative factors made offshoring less attractive?Delivery, Freight cost, Rising wages, Supply chain interruption risk/Natural disaster risk/Political instability , Tariffs, Travel cost/time
What domestic positive factors made reshoring more attractive?Customer responsiveness improvement, Higher productivity, Lead time/Time to market, Proximity to customers/market
Mentions use of TCO or similar concept?Yes
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