Following the wide scale outsourcing of U.S. manufacturing production over the past 40 years (much of it sent off to Asian countries like China where dramatically lower wages and a more than ample supply of workers meant low manufacturing costs in comparison to U.S. production) a new “reshoring” movement is beginning to emerge. As overseas production concerns grow, many companies have begun to realize that cheaper production at any cost–including the loss of control over quality and the often lackluster responsiveness of overseas manufacturing partners–isn’t always the answer, many have begun to evaluate whether it makes more sense to bring production back home to domestic shores.

Certainly there are many factors at play in such a large decision. Just as it can take years of planning and large-scale investments to find and build relationships with manufacturers in faraway countries, so too must OEMS consider the costs of bringing those products back home.

An online tool from the Reshoring Initiative aims to offer a pain-free decision making process for anyone considering the possible benefits of reshoring their production. Positing that a decision based solely on price can lead to a 20 or even 30% miscalculation of the actual cost of offshore production, this tool takes into consideration a multitude of factors (overhead, balance sheets, risks, and corporate strategy, to name a few) to determine the total cost of ownership for those relationships.


The Total Cost of Ownership tool is a great resource for anyone considering outsourcing OR onshoring production, providing a one-stop source to compare side-by-side use cases that can provide supply chain managers, purchasers, executives and salespeople with a true understanding of the costs involved in managing your production.

Still have questions about whether reshoring is a good choice for your company? Contact KASO today to talk with one of our representatives to get more details on the cost of switching to a local manufacturer.