Onshoring Consultant Services

Onshoring Consulting Services

Increased supply chain risk in foreign countries as well as significant inflationary pressures are causing the economics of the global supply chain to change drastically. This is one of the reasons onshoring or nearshoring has become a focus of many strategic planning activities.

Onshoring is typically defined as the process of bringing the manufacturing of product back to North America. Onshoring is a subset of a broader concept of locating production and distribution activities closer to the point of consumption: (also know as nearshoring). Thirty years ago, manufacturers could source a complete product from China or other low cost areas for less than the cost of the raw materials sourced in the United States. In 2013, we did a study of the total cost of ownership (call us for insight to our proprietary methodology) for 89 countries and found that this was no longer the case.

From a total cost of ownership perspective, the differential between China and Mexico is only a few percentage points. In the near term, low inflation rates in North America and high inflation rates for labor, foreign exchange and shipping in the far east will allow Mexico and China to reach parity: for most companies, by the time planning and implementation is completed, we will have reached parity.

For companies who are working supply chain strategic plans, there are many options available to them to bring product back from foreign locales. They include, but aren’t limited to:

  • Contract Manufacturing
  • Sheltered Workshops in Mexico
  • Establishing your own maquiladoras
  • The 5 most cost effective states in the US to do manufacturing and distribution

Click here to see our latest study on Mexico vs. China

Onshoring Consulting Services
Group50 onshoring consulting company has been working with several of its clients on bringing their production back to North America. The reality is that global economics are rapidly being changed by geopolitical issues, inflation, cost of capital and foreign exchange risks. Now is the time to do a Make vs. Buy analysis and identify what your opportunities are for onshoring.

Find out more about how Group50 can provide you with a Total Cost Make vs. Buy analysis based on the economic impact studies we have done for our other clients by requesting more information here , or by sending an email to info@group50.com or calling us at (909) 949-9083

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