Case for Off-Shoring
The Alliance for American Manufacturing equipped its Washington headquarters with US-made products only. The cheapest domestically manufactured microwave was $550, 10 times Walmart Asia’s offering at $55 (The National Journal).
Case for Home-Shoring
- Oil prices are three times higher than they were in 2000, resulting in higher fuel costs for cargo ships.
- In order to heat factories, natural gas costs 4x more in Asia than in the US.
- Wages in China are now five times what they were in 2000, and will continue to rise by 18%/year.
- Due to innovations in efficiency, wages are a smaller part of the total cost for finished goods.
- Public goodwill
Are you off-shoring? Home-shoring?
