The nonprofit Reshoring Initiative enables U.S. companies to close the cost gap with offshore manufacturing by helping each company understand the true cost of offshoring—as well as the total cost of ownership.

When they combine reshoring with cost-saving and customer value-enhancing techniques such as lean, quick response manufacturing, theory of constraints, and design for manufacture and assembly, companies discover they can improve their customer responsiveness, product innovation, and profitability.

Boston Consulting Group and Accenture recently reported that Chinese net manufacturing costs are rapidly converging on U.S. costs. For this economic trend to have a rapid impact on the behavior of major U.S. companies, the companies will have to calculate their total cost of ownership.

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