Viewing blog posts written by Gino DiCaro
California not taking advantage of reshoresPosted by Gino DiCaro, VP, Communications on Nov. 17, 2016
Dr. Harry Moser and the Reshoring Initiative are working to bring good, well-paying manufacturing jobs back to the United States 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".
Acccording to Moser, most companies make sourcing decisions based solely on price, oftentimes resulting in a 20 to 30 percent miscalculation of actual offshoring costs. HIs Total Cost of Ownership (TCO) Estimator helps companies account for all relevant factors — overhead, balance sheet, risks, corporate strategy and other external and internal business considerations. Using this information companies are coming back to the U.S. and reshoring their facilities, for which our country's middle class benefits tremendously.
Unfortunately a look at the Reshoring Initiative's regional reshoring data since the recession shows that California has been unable to keep pace with the country and attract an amount of jobs commensurate with the state's size and manufacturing prowess. Even with our proximity to markets we are losing out to other states that can provide lower costs and predicability.
With only one percent of the reshored jobs, California should work to take advantage of the reshoring phenomenon for our middle class and economy.
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