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Reshoring – The
Future of Supply
Chains
w/ Rosemary Coates - Board
Member & Founder at Reshoring
Institute, Best-selling Author, Host of
the Frictionless Supply Chain
podcast
September 1st, 2022 at 12:30
pm PT, 3:30 pm ET, 8:30 pm BST
Rayvonne Carter
Webinar Coordinator,
Supply Chain Brief
03
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Click on the Questions panel
to
interact with the presenters
Reshoring – The
Future of Supply
Chains
w/ Rosemary Coates - Board
Member & Founder at Reshoring
Institute, Best-selling Author, Host of
the Frictionless Supply Chain
podcast
Sept 1, 2022
Rosemary Coates, Executive Director
+1 408-605-8867
Reshoring –
The Future of
Supply Chains
Rosemary Coates
▪ Executive Director of the Reshoring Institute
▪ President of Blue Silk Consulting
▪ 40 years of Global Supply Chain consulting experience
▪ Over 80 supply chain clients, worldwide
▪ Author of
–42 Rules for Sourcing and Manufacturing in China
–Strategic Negotiation for Buyers and
–42 Rules for Superior Field Service
–The Reshoring Guidebook
– Legal Blacksmith – How To Avoid and Defend Sup0ply Chain Disputes
▪BS in Business Logistics – Arizona State University 1979
▪MBA – University of San Diego 1989
2
Our Mission
The Reshoring Institute has a dual mission:
1. Provide research and consulting for companies bringing
manufacturing back to America
2. Provide experiential education for university students to learn
about global sourcing and manufacturing
501c3 Non-profit Organization
info@ReshoringInstitute.org
408-605-8867
www.ReshoringInstitute.org
Our Student Interns
Interns work 100 paid hours per semester on
directed research in support of the Institute’s
research agenda or as directed by clients.
Our Student Interns
Interns work 100 paid hours per
semester on directed research in
support of the Institute’s research
agenda or as directed by clients.
4
In the 1990s and 2000s offshoring to China was
the economic strategy of US manufacturers.
Copyright 2022 Reshoring Institute
5
I helped dozens of
companies move
sourcing and production
to China.
Copyright 2022 Reshoring Institute
2012 Presidential Elections:
The catalyst for the reshoring movement in America
Copyright 2022 Reshoring Institute
6
7
Why are companies Reshoring now?
▪ Mood of America has changed
▪ Tax Reform, Jobs, Repatriation of
Funds Act of 2017
▪ 232 and 301 tariffs on imports
• – Anti-dumping and countervailing
• duties
▪ Global pandemic
▪ Intellectual Property protection
▪ Advanced technologies
▪ Incentives offered by state &
local governments
▪ Corporate “Economic Patriotism”
Copyright 2022 Reshoring Institute
Copyright 2019 Reshoring Institute
12
Rebuilding the Middle Class
In America
• Manufacturing is key to middle
class growth
• Factory jobs are essential to
economic health in America
• Every new manufacturing job
has a multiplier effect – about
1.4X
We are not going back to 1960s manufacturing…
3D Printing
Internet of Things
13
Robotics
Copyright 2022 Reshoring Institute
Artificial Intelligence
This is NOT your grandfather’s manufacturing!
Blue-collar jobs become “New-collar” jobs
Retraining and up-skilling workers
Reshore?
Nearshore?
China +1?
China +2
What is your global sourcing and manufacturing
strategy?
Copyright 2022 Reshoring Institute
Otay Mesa Commercial Crossing – China +1?
9
Waterlogic
US Manufacturing Location
Waterlogic systems provide
more than 50 million people
with clean drinking water
every day.
▪ Headquartered in the UK
▪ Manufacturing in Qindao, China
▪ Growth market is in the U.S.
▪ Global Strategy
– Manufacture close to customers
– Develop U.S. supply base
– Consolidate U.S. offices and hire 200 people
– Avoid China 301 tariffs
– Sell to U.S. Gov
Copyright 2022 Reshoring Institute
10
Reshoring Success – GE
Geospring Water
Heaters
▪ GE Appliance Park in Louisville –
re-opened
▪ New, automated and highly
engineered production lines
▪ Negotiations with unions
Copyright 2022 Reshoring Institute
11
Reshoring Failure: Otis
Elevator
▪ Opened new manufacturing plant in
Florence, SC, bringing a production
line back from Mexico
▪ Project failed and cost the company
$60 million in lost business
▪ Primary reasons for the failure:
– Lack of skilled labor
– No partnering with local schools and
colleges to train new workers
– Concurrent ERP implementation
Copyright 20202Reshoring Institute
12
Reshoring Institute’s
“MADE IN USA”
Survey
Copyright 2022 Reshoring Institute
13
Do you prefer products that are MADE in the USA?
Would you pay more for a product MADE in the USA?
~70%
~60%
Copyright 2022 Reshoring Institute
14
How much more would you pay for products MADE IN USA?
When analyzing the costs/benefits of reshoring, we
consider the opportunity to charge more for a
product made in America
~83% say
they would
pay up to 20%
more
Copyright 2022 Reshoring Institute
15
Perception of Better
Quality
Over 46% of respondents believe
that products manufactured in
America are better quality than
those manufactured in other
countries. In our survey, there was no
evidence offered that American-made
products are better – it was simply a
perception. The likely influencers in this
perception include political rhetoric against
goods made in China, loss of manufacturing
jobs in the U.S., and past experience with
poorly made and inferior foreign products.
Do you think products made in
the USA are better quality?
Copyright 2022 Reshoring Institute
16
Country of Origin and
Product Labeling
58% of respondents indicated that
the country of origin of a product
influences their purchasing
decision. Respondents added no comments
about the differences between foreign
countries, for example, does the country of
origin “China” cause a different response from
the country of origin “Germany” or “Mexico”
or “Turkey.”
Does the origin of
the product affect
your purchase
decision?
Copyright 2022 Reshoring Institute
Do you believe the “MADE IN”
information on product labels?
17
60% of respondents – believe the information on
the
“Made In” labels on products.
With the rise of global counterfeits - about 2
TRILLION/year in 2020 – OECD estimates 1 in every
20 products you buy on line are counterfeit
Copyright 2022 Reshoring Institute
What can we conclude?
▪Americans prefer products MADE IN USA
▪Americans believe American products are
better/higher quality
▪Americans say they are willing to pay up to
20% more
▪Americans appear to be unaware of global
counterfeiting
18
Copyright 2022 Reshoring Institute
info@ReshoringInstitute.org
408-605-8867
Rosemary Coates
rcoates@ReshoringInstitute.org
Contact Us:
www.ReshoringInstitute.org
Copyright 2022 Reshoring Institute
19
Reshoring – The Future of Supply Chains

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Reshoring – The Future of Supply Chains

  • 1. Reshoring – The Future of Supply Chains w/ Rosemary Coates - Board Member & Founder at Reshoring Institute, Best-selling Author, Host of the Frictionless Supply Chain podcast September 1st, 2022 at 12:30 pm PT, 3:30 pm ET, 8:30 pm BST Rayvonne Carter Webinar Coordinator, Supply Chain Brief
  • 2. 03
  • 3. TO USE YOUR TELEPHONE: You must select "Use Telephone" after joining and call in using the numbers below. United States: +1 (562) 247-8422 Access Code: 817-046-789 Audio PIN: Shown after joining the webinar TO USE YOUR COMPUTER'S AUDIO: When the webinar begins, you will be connected to audio using your computer's microphone and speakers (VoIP). A headset is recommended. Click on the Questions panel to interact with the presenters
  • 4. Reshoring – The Future of Supply Chains w/ Rosemary Coates - Board Member & Founder at Reshoring Institute, Best-selling Author, Host of the Frictionless Supply Chain podcast
  • 5. Sept 1, 2022 Rosemary Coates, Executive Director +1 408-605-8867 Reshoring – The Future of Supply Chains
  • 6. Rosemary Coates ▪ Executive Director of the Reshoring Institute ▪ President of Blue Silk Consulting ▪ 40 years of Global Supply Chain consulting experience ▪ Over 80 supply chain clients, worldwide ▪ Author of –42 Rules for Sourcing and Manufacturing in China –Strategic Negotiation for Buyers and –42 Rules for Superior Field Service –The Reshoring Guidebook – Legal Blacksmith – How To Avoid and Defend Sup0ply Chain Disputes ▪BS in Business Logistics – Arizona State University 1979 ▪MBA – University of San Diego 1989 2
  • 7. Our Mission The Reshoring Institute has a dual mission: 1. Provide research and consulting for companies bringing manufacturing back to America 2. Provide experiential education for university students to learn about global sourcing and manufacturing 501c3 Non-profit Organization info@ReshoringInstitute.org 408-605-8867 www.ReshoringInstitute.org Our Student Interns Interns work 100 paid hours per semester on directed research in support of the Institute’s research agenda or as directed by clients. Our Student Interns Interns work 100 paid hours per semester on directed research in support of the Institute’s research agenda or as directed by clients.
  • 8. 4 In the 1990s and 2000s offshoring to China was the economic strategy of US manufacturers. Copyright 2022 Reshoring Institute
  • 9. 5 I helped dozens of companies move sourcing and production to China. Copyright 2022 Reshoring Institute
  • 10. 2012 Presidential Elections: The catalyst for the reshoring movement in America Copyright 2022 Reshoring Institute 6
  • 11. 7 Why are companies Reshoring now? ▪ Mood of America has changed ▪ Tax Reform, Jobs, Repatriation of Funds Act of 2017 ▪ 232 and 301 tariffs on imports • – Anti-dumping and countervailing • duties ▪ Global pandemic ▪ Intellectual Property protection ▪ Advanced technologies ▪ Incentives offered by state & local governments ▪ Corporate “Economic Patriotism” Copyright 2022 Reshoring Institute
  • 12. Copyright 2019 Reshoring Institute 12 Rebuilding the Middle Class In America • Manufacturing is key to middle class growth • Factory jobs are essential to economic health in America • Every new manufacturing job has a multiplier effect – about 1.4X
  • 13. We are not going back to 1960s manufacturing… 3D Printing Internet of Things 13 Robotics Copyright 2022 Reshoring Institute Artificial Intelligence This is NOT your grandfather’s manufacturing! Blue-collar jobs become “New-collar” jobs Retraining and up-skilling workers
  • 14. Reshore? Nearshore? China +1? China +2 What is your global sourcing and manufacturing strategy? Copyright 2022 Reshoring Institute
  • 15. Otay Mesa Commercial Crossing – China +1?
  • 16. 9 Waterlogic US Manufacturing Location Waterlogic systems provide more than 50 million people with clean drinking water every day. ▪ Headquartered in the UK ▪ Manufacturing in Qindao, China ▪ Growth market is in the U.S. ▪ Global Strategy – Manufacture close to customers – Develop U.S. supply base – Consolidate U.S. offices and hire 200 people – Avoid China 301 tariffs – Sell to U.S. Gov Copyright 2022 Reshoring Institute
  • 17. 10 Reshoring Success – GE Geospring Water Heaters ▪ GE Appliance Park in Louisville – re-opened ▪ New, automated and highly engineered production lines ▪ Negotiations with unions Copyright 2022 Reshoring Institute
  • 18. 11 Reshoring Failure: Otis Elevator ▪ Opened new manufacturing plant in Florence, SC, bringing a production line back from Mexico ▪ Project failed and cost the company $60 million in lost business ▪ Primary reasons for the failure: – Lack of skilled labor – No partnering with local schools and colleges to train new workers – Concurrent ERP implementation Copyright 20202Reshoring Institute
  • 19. 12 Reshoring Institute’s “MADE IN USA” Survey Copyright 2022 Reshoring Institute
  • 20. 13 Do you prefer products that are MADE in the USA? Would you pay more for a product MADE in the USA? ~70% ~60% Copyright 2022 Reshoring Institute
  • 21. 14 How much more would you pay for products MADE IN USA? When analyzing the costs/benefits of reshoring, we consider the opportunity to charge more for a product made in America ~83% say they would pay up to 20% more Copyright 2022 Reshoring Institute
  • 22. 15 Perception of Better Quality Over 46% of respondents believe that products manufactured in America are better quality than those manufactured in other countries. In our survey, there was no evidence offered that American-made products are better – it was simply a perception. The likely influencers in this perception include political rhetoric against goods made in China, loss of manufacturing jobs in the U.S., and past experience with poorly made and inferior foreign products. Do you think products made in the USA are better quality? Copyright 2022 Reshoring Institute
  • 23. 16 Country of Origin and Product Labeling 58% of respondents indicated that the country of origin of a product influences their purchasing decision. Respondents added no comments about the differences between foreign countries, for example, does the country of origin “China” cause a different response from the country of origin “Germany” or “Mexico” or “Turkey.” Does the origin of the product affect your purchase decision? Copyright 2022 Reshoring Institute
  • 24. Do you believe the “MADE IN” information on product labels? 17 60% of respondents – believe the information on the “Made In” labels on products. With the rise of global counterfeits - about 2 TRILLION/year in 2020 – OECD estimates 1 in every 20 products you buy on line are counterfeit Copyright 2022 Reshoring Institute
  • 25. What can we conclude? ▪Americans prefer products MADE IN USA ▪Americans believe American products are better/higher quality ▪Americans say they are willing to pay up to 20% more ▪Americans appear to be unaware of global counterfeiting 18 Copyright 2022 Reshoring Institute