Goal: Efficiently relocate manufacturing operations to the U.S. with minimal disruption and maximum ROI
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✅ Define reshoring objectives (cost reduction, quality control, proximity to market, compliance, etc.)
✅ Conduct total cost of ownership (TCO) analysis vs. offshore operations
✅ Assess impact on lead times, inventory, and supply chain resilience
✅ Determine feasibility of reshoring entire operations or select components
✅ Evaluate impact on customer service levels and time-to-market
✅ Identify optimal U.S. region(s) for operations (e.g., proximity to ports, suppliers, customers)
✅ Evaluate incentives: tax credits, grants, utility rebates (e.g., Cal Competes, Go-Biz)
✅ Assess utility infrastructure, transportation access, and permitting processes
✅ Secure appropriate facility or plan greenfield/brownfield development
✅ Validate zoning, regulatory, and environmental compliance
✅ Develop capital expenditure (CAPEX) and operational expenditure (OPEX) estimates
✅ Identify federal, state, and local funding opportunities or loan programs
✅ Forecast labor cost differentials and overheads
✅ Plan for transitional costs: tooling, relocation, training, downtime
✅ Build financial models to support ROI and breakeven analysis
✅ Assess workforce availability and skills in target regions
✅ Identify training needs and develop upskilling/reskilling programs
✅ Engage local workforce development boards or community colleges
✅ Ensure compliance with labor laws and wage standards
✅ Establish safety protocols and workforce retention strategies
✅ Identify domestic suppliers and validate capabilities
✅ Qualify alternative U.S. vendors for critical components
✅ Evaluate transportation, logistics, and warehousing requirements
✅ Restructure sourcing strategies: nearshoring, dual sourcing, vertical integration
✅ Use tools such as California’s Sourcing & Procurement Platform (CSPP) or Supplier Scouting services
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✅ Assess automation opportunities to offset labor cost increases
✅ Plan for new machinery, equipment retrofits, and digital infrastructure
✅ Ensure cybersecurity protections for digital manufacturing systems
✅ Consider Industry 4.0 integration: IoT, AI, MES, ERP/MRP, WMS
✅ Explore R&D and innovation incentives for technology investment
✅ Confirm compliance with U.S. environmental, labor, and safety regulations
✅ Evaluate any intellectual property (IP) repatriation needs
✅ Review import/export regulations (especially for inputs still sourced globally)
✅ If needed, prepare documentation for compliance with Build America, Buy America (BABA)
✅ Understand local, state, and federal business regulations (licenses, tax codes, etc.)
✅ Engage internal teams early in the reshoring planning process
✅ Communicate strategy and rationale to customers, investors, and suppliers
✅ Plan a change management strategy to support organizational transition
✅ Set clear KPIs and success metrics for reshoring implementation
✅ Establish a reshoring project management team with clear accountability
Define reshoring objectives (cost reduction, quality control, proximity to market, compliance, etc.). Identify pain points such as delays, tariffs, quality issues, or geopolitical risk. Conduct total cost of ownership (TCO) analysis vs. offshore operations. Then, map out which components or processes are most critical to reshore first.
Focus on high-impact items — those with high transportation costs, quality concerns, long lead times, or those essential to core products. Prioritize by strategic value and feasibility.
In addition to price, offshore costs usually include variables like freight, tariffs, duties, and last mile trucking. Generally, hidden costs include inventory holding expenses, lead times, IP risk, and potential disruptions.
You're mitigating geopolitical instability, tariff exposure, supply chain & shipping lane disruptions, quality control issues, IP theft, long lead times, and over-reliance on single-country sourcing.
Conduct supplier qualification audits. Ask for capability statements, certifications (e.g., ISO, ITAR), sample runs, and references. Start small with a pilot or phased approach. Leverage supplier sourcing and procurement platforms as well as national databases to research potential suppliers.
6 to 24 months depending on complexity, tooling needs, regulatory approvals, and production volume. Expect longer lead times early on and prepare a detailed ramp-up plan.
Review terms for exit clauses or renegotiation options. Consult legal counsel. Use transition agreements or multi-sourcing strategies to minimize disruption. Shore up current supply chains, while sourcing domestic suppliers.
Run ROI projections over 3–5 years using detailed financial models. Factor in reputational benefits, customer preferences for Made in USA, reduced carrying costs, and improved agility. Your local MEP centers can provide assistance with modeling, analysis, and strategic planning.
Partner with local workforce boards, technical colleges, Small Business Development Centers, and the MEP National Network. Leverage apprenticeship programs, on-the-job training, and upskilling platforms.
Combine reshoring with near-shoring and friendshoring, dual sourcing, safety stock strategies, and digital visibility tools (e.g., real-time tracking, supplier scorecards).
Review financials, facility capabilities, certifications, compliance (e.g., BABA/BA), cybersecurity standards (NIST/CMMC), and conduct site visits or third-party audits.
Absolutely. Many firms dual-source high-risk items or designate domestic sources for short lead-time needs and offshore sources for high-volume runs until a cost-effective domestic source can be qualified.
Define reshoring objectives (cost reduction, quality control, proximity to market, compliance, etc.) Identify pain points such as delays, tariffs, quality issues, or geopolitical risk. Conduct total cost of ownership (TCO) analysis vs. offshore operations. Then map out which components or processes are most critical to reshore first.
In addition to price, offshore costs usually include variables like freight, tariffs, duties and last mile trucking. Generally hidden costs include inventory holding expenses, lead times, IP risk and potential disruptions.
You're mitigating geopolitical instability, tariff exposure, supply chain & shipping lane disruptions, quality control issues, IP theft, long lead times, and over-reliance on single-country sourcing.
6 to 24 months depending on complexity, tooling needs, regulatory approvals, and production volume. Expect longer lead times early on and prepare a detailed ramp-up plan.
Partner with local workforce boards, technical colleges, Small Business Development Centers, and the MEP National Network. Leverage apprenticeship programs, on-the-job training, and upskilling platforms.
Review financials, facility capabilities, certifications, compliance (e.g., BABA/BA), cybersecurity standards (NIST/CMMC), and conduct site visits or third-party audits.
Focus on high-impact items: those with high transportation costs, quality concerns, long lead times, or those essential to core products. Prioritize by strategic value and feasibility.
Conduct supplier qualification audits. Ask for capability statements, certifications (e.g., ISO, ITAR), sample runs, and references. Start small with a pilot or phased approach. Leverage supplier sourcing and procurement platforms, as well as national databases to research potential suppliers.
Review terms for exit clauses or renegotiation options. Consult legal counsel. Use transition agreements or multi-sourcing strategies to minimize disruption. Shore up current supply chains, while sourcing domestic suppliers.
Run ROI projections over 3–5 years using detailed financial models. Factor in reputational benefits, customer preferences for Made in USA, reduced carrying costs, and improved agility. Your local MEP centers can provide assistance with modeling, analysis, and strategic planning.
Combine reshoring with near-shoring and friendshoring, dual sourcing, safety stock strategies, and digital visibility tools (e.g., real-time tracking, supplier scorecards).
Absolutely. Many firms dual-source high-risk items or designate domestic sources for short lead-time needs and offshore sources for high-volume runs until a cost-effective domestic source can be qualified.
