Overseas Production Could Actually Be Costing You More by Danny Brown

Why to ReshoreA friend of ours had some car trouble and purchased a part online, using overseas production, for a quarter of the price. Thinking he had scored a deal, he had his mechanic install it only to have it fail a week later. After several hours spent navigating the company’s customer service portal, he managed to convince them to send another part in exchange for the broken one. It took four weeks to arrive since it was being shipped from overseas.

Three days after the new part was installed (and more car rental and auto shop fees) it failed again; so our friend went back at it — waiting on the phone, haggling with customer service, mumbling curse words under his breath, until another part arrived…a month later. When all was said and done that “less expensive” part ended up costing our friend nearly three times more and he realized that reshoring manufacturing is a consumer issue too, not just a topic for CEOs debating the value of overseas production logistics.

CustomFab USA has seen similar attempts by customers wanting to keep costs down by outsourcing overseas production.  And while it might initially appear the final price tag is lower than manufacturing domestically, there are important variables to consider when comparing the costs. Hence, the reshoring of manufacturing is not only a mindset required for manufacturers, but also for consumers looking for the benefits of American made products.

PRODUCTION

Having a domestic manufacturing plant that a