Montalbano went through the reasons offshoring occurred – and why production is returning to the U.S. Among them, she said: higher wages in China; and the increased use of the TCO, which includes costs, risks and strategic factors that were ignored over the past few decades.
She listed several industries and products that are currently being reshored, and posited that reshoring enables innovation, which boosts U.S. competitiveness. Automation, robotics, Industry 4.0 and process improvements all serve to bridge the skills gap, improve efficiency and quality, increase productivity, drive speed to market, reduce waste, cost and labor components and drive sustainability.
Bringing back textile and apparel manufacturing is beneficial in that it brings: smaller batches, lowering inventory levels and total cost; more flexibility, driving mass customization, easier style changes and speed to market for fast fashion; advanced technologies; and a local for local model, which has a positive impact on the economy and the environment.
Notably, apparel and textiles is the No. 4 reshored industry, with 3,226 jobs having been creating, according to the Reshoring Initiative library, she noted.
She went on to discuss how several companies have benefited from American-made and domestic sourcing and mentioned the brand value for made in the USA.
“Reshoring’s emotional connection with consumers is delivered by how, where and by whom the product is made, Montalbano said.
A study by Sourcing Journal indicated that “authenticity” – defined by consumers as reliable, respectful and real – translates to the bottom line, she said. The study showed that 88 percent of consumers will reward a brand for authenticity, she said.
Montalbano also mentioned a number of tools, including the Total Cost of Ownership Estimator, that the Reshoring Initiative offers to help companies reevaluate offshoring or explore reshoring.
Posted November 23, 2016
By Devin Steele (DSteele@eTextileCommunications.com)
SAN ANTONIO, Texas – Sandy Montalbano, a consultant to the Reshoring Initiative, gave a presentation on “Technology and TCO (Total Cost of Ownership), Together, Can Reshore the U.S. Apparel Industry” during SPESA’s Executive Conference here this month.
Reshoring, backshoring, onshoring and insourcing all have similar definitions, ultimately meaning the same thing: bringing back the manufacture of products that will be sold or assembled here, she said.
The Reshoring Initiative, she said, assists companies to more accurately access their total cost of offshoring with its Total Cost of Ownership Estimator™, a free online tool that helps companies account for all relevant factors — overhead, balance sheet, risks, corporate strategy and other external and internal business considerations — to determine the true total cost of ownership.
Executive Conference
Reshoring Initiative leading made-in-America movement
