Why outsource locally?
Utilizing local contract manufacturing companies can be more cost effective than offshoring internationally. Poor quality, losing trade secrets, communication difficulties, and lengthy delivery times are just a few of the negatives to offshoring internationally. These unacceptable situations offset any initial savings in costs by buying overseas.
Outsourcing to local companies can reduce your total costs by providing consistently high quality product. In addition, lead times are shorter, which allows for a smaller inventory. Shipping costs are reduced and there is less money tied up during transit. With outsourcing locally,there is less intellectual property risk and economic instability.
Listed below is a chart with an example of inputs to compare total costs of offshoring internationally vs. locally. Please visit www.reshorenow.org to input your own information into the Total Cost of Ownership calculator to see the difference.