Rosemary Coates, Founder of Blue Silk Consulting (WBE) and The Reshoring Institute, recently shared insightful information with ConnXus regarding reshoring initiatives and the opportunities it presents for diverse suppliers, including woman-owned, minority owned and veteran-owned businesses. Learn more about how The Reshoring Institute supports the diversification of US supply chains in this guest blog authored by Ms. Rosemary Coates.
A recent study by the Boston Consulting Group found that 54% of companies over $1 billion in revenue are reshoring their production now or at least considering it. Reshoring is the process of bringing manufacturing back to the US – the opposite of offshoring. While there are a lot of news articles and people talking about reshoring, there are very few resources to help companies through the process. The US Department of Commerce offers ACE, an analysis tool for evaluating your reshoring program, and there are other organizations doing some work in this area, but it is not enough for most companies to complete a Reshoring project.
To fill this gap, Blue Silk Consulting and the University of San Diego established The Reshoring Institute, a 501c3 Non-profit organization. The Reshoring Institute is organized under the umbrella of the University of San Diego Supply Chain Management Institute, to provide research and support for companies trying to bring manufacturing and services back to America. This research may include things like site comparisons, tax incentives available, science and math education available by area, marketing and PR and cost comparison development. The Reshoring Institute Directors oversee and guide this reshoring research and support work, using graduate student interns from the University.
The Reshoring Institute has a dual purpose:
- To provide support and research for companies trying to reshore manufacturing to the US
- To educate students about manufacturing in America
The University of San Diego was chosen for this collaboration because of its strong programs in global supply chain management, its proximity to Mexico and production that could return from there, availability of graduate-level interns and its very active Supply Chain Management Institute.
The ConnXus Connection
As companies reshore production, they must also rebuild their supply base in the US. During the past 25 years, production has moved offshore and supporting suppliers have followed. Whole industries such as furniture, apparel and footwear and plastics left in the 1990s and 2000s, but are now starting to come back. Rebuilding a supporting supply base is a non-trivial task and can easily take a year or more. This presents a grand opportunity for woman-owned businesses, small businesses and disadvantaged suppliers. The doors are open to new ideas and new suppliers.
To discover new Reshoring opportunities, suppliers should:
- Be alert for news articles about companies that are reshoring
- Stay in touch with local and state Economic Development organizations – these people are usually the first to know about new businesses in their area
- Subscribe to the Reshoring Institute’s Quarterly Newsletter (www.ReshoringInstitute.org)
- Visit the Reshoring Institute’s on-line free library of articles on Reshoring and other research
The future is bright with pathways to bringing manufacturing back to America and supporting these efforts with American suppliers.
About the Author
Ms. Coates is the Executive Director of the Reshoring Institute and the President of Blue Silk Consulting, a WBE Global Supply Chain consulting firm. She is a best-selling author of: 42 Rules for Sourcing and Manufacturing in China and 42 Rules for Superior Field Service and The Reshoring Guidebook. Ms. Coates lives in Silicon Valley and has worked with over 80 clients worldwide. She is also an Expert Witness for legal cases involving global supply chain matters. She is passionate about reshoring.