The Manufacturing Extension Partnership and the Reshoring Initiative are collaborating to provide manufacturers the information needed to make informed decisions based on the total cost of ownership specific to their investment decisions. On November 29, 2012, NIST MEP hosted a webinar that demonstrated the Total Cost of Ownership™ (TCO) tool. To see the webinar, click on the button below.
A significant trend of bringing back production operations to the United States- otherwise known as re-shoring – is starting to emerge. As companies dig deeper into the total cost of production and other expense related to delivering the product to the consumer, many companies are considering domestic operations. The reshoring trend provides the U.S. with the opportunity to enhance U.S. manufacturing capabilities, support exporting, and develop manufacturing jobs. The benefits to individual companies and the Nation are significant.
MEP is a catalyst for strengthening American manufacturing – accelerating its ongoing transformation into a more efficient and powerful engine of innovation driving economic growth and job creation. Through various public-private partnerships, MEP is uniquely positioned to provide a valuable infrastructure that fosters resilient processes for manufacturers to “Make it in America”. MEP works with U.S. manufacturers by assisting companies to more accurately assess their total cost of offshoring, and shift collective thinking from ‘offshoring is cheaper’ to ‘local reduces the total cost of ownership’. MEP’s unique position allows for the utilization of a network of MEP Centers and field staff of 1,300+ technical experts (located in every state) to educate the nation’s small and medium manufacturing base on how to successfully use and implement available tools to determine the benefits of reshoring. MEP works with partners throughout the network to provide the tools, services and connections focused on five key areas: continuous improvement, technology acceleration, supply chain development, sustainability, and workforce.
To learn more about reshoring and the tools available to calculate cost, contact your local center.
MEP works with partners to offers a wide range of resources and information to help U.S. Manufacturers in areas of workforce, technology adoption, environment and energy, quality, and more. For help in assessing whether it makes sense to reshore, Select USA and the Total Cost of Ownership Estimator has a number of useful resources.
SelectUSA seeks to highlight the many advantages the United States offers as a location for business and investment. From a vast domestic market, to a transparent legal system, to the most innovative companies in the world, America is the place for business.
SelectUSA was created at the federal level to showcase the United States as the world’s premier business location and to provide easy access to federal-level programs and services related to business investment. SelectUSA is designed to complement the activities of our states—the primary drivers of economic development in the United States.
The SelectUSA website has information for state economic development agencies and businesses—foreign and domestic—to better understand the complete value proposition offered to firms located in the United States. Information provided includes:
Total Cost of Ownership Estimator
The Total Cost of Ownership Estimator™, developed by the Reshoring Initiative, is a tool that is available for manufacturers to determine their total cost of ownership. This tool enables aggregation of all cost and risk factors into one cost for simpler, more objective decision making. TCO analysis often shows there can be a large difference between the price of something and its long term cost. Users can account for all relevant factors when determining their total cost of ownership, including overhead, balance sheet, corporate strategy and other internal and external business costs.
The Reshoring Initiative, is an industry-led effort to bring manufacturing jobs back to the U.S. The initiative works with U.S. manufacturers to help them recognize their profit potential as well as the critical role they play in strengthening the economy by utilizing local sourcing and production.