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3-Part Article Series on Reshoring Manufacturing, by Harry Moser and Dr. Lisa Lang →

Originally published in Fastener Technology International Magazine — Velocity Manufacturing, Total Cost of Ownership Calculation, and Reshoring Manufacturing Can Increase Your Competitiveness.

Why Companies Reshore

• Reduce inventories and lead times ¹
• Improve quality and reduce variability ²
• Reduce chaos and hassles in the supply chain ³
• Speed up innovation ⁴
• Reduce tariff and import-compliance exposure ⁵
• Most importantly, reduce total cost ⁶

A widely cited finding from a 2009 Archstone Consulting survey found that most manufacturers use rudimentary total-cost models that ignore as much as 20% of the real cost of offshoring — meaning many reshoring decisions look better once the full cost picture is accounted for. A more recent, larger survey confirms the same pattern: only 30% of manufacturers use a full Total Cost of Ownership analysis when comparing domestic to offshore sourcing. ^*

From the same team

If your company runs a highly custom job shop or machine shop, Velocity Scheduling System can help you hit on-time delivery and cut lead times.

1. 43% of manufacturers said they'd pay a 10–20% price premium for parts delivered on a 1-week lead time versus 6 weeks. 2025 Reshoring Survey Report, Reshoring Initiative & Regions Recruiting, p. 9.
2. 61% of contract manufacturers say their customers reshored specifically over quality, rework, and warranty concerns with offshore suppliers. 2025 Reshoring Survey Report, p. 33.
3. 50% of contract manufacturers say customers onshored to reduce supply chain disruption risk, and 77% of manufacturers report concern about a Taiwan-related disruption to their supply chain. 2025 Reshoring Survey Report, pp. 17, 33.
4. 45% of manufacturers cite the benefit of locating production near their own engineering team as a top reason to reshore. 2025 Reshoring Survey Report, p. 14.
5. 22% of contract manufacturers say customers switched from offshore suppliers over freight and duty costs, and 15% cite new Section 301 tariffs specifically. 2025 Reshoring Survey Report, p. 33.
6. In 190 documented cases comparing sourcing from China versus the U.S., the win rate for domestic production rose from 8% when compared on price alone to 32% when compared on full Total Cost of Ownership. 2025 Reshoring Survey Report, p. 39.
7. Only 30% of OEMs use Total Cost of Ownership when comparing domestic to offshore sourcing; 37% use Landed Cost and 17% still use FOB/Ex-Works pricing alone. 2025 Reshoring Survey Report, p. 8.

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