Total cost of ownership trends precipitate manufacturing jobs shift

TUCSON, Ariz., Feb. 15, 2012 /PRNewswire/ -- /24-7PressRelease/ -- The Offshore Group recently sat down to speak with Harry Moser. Moser is the founder and director of the non-profit Reshoring Initiative. The efforts of this organization are aimed at facilitating the return of good paying manufacturing jobs to the United States by assisting companies to more accurately assess their total cost of ownership.

When all costs are taken into consideration, including logistics, transportation and the carrying cost of inventory (among others), it often makes economic sense to repatriate manufacturing jobs from distant geographies such as the Far East.

Taking into consideration certain economic factors, however, Moser recognizes that some Mexico manufacturing will occur as a result of the trending of the movement of jobs from the Far East. Cases such as these will present opportunities for American manufacturers to participate in the supply chains of these factories through the provision of components, equipment and machinery, and raw materials. According to Moser, "When production is performed in the Far East, a very small percentage of material inputs are U.S. sourced. My first choice is the U.S. Canada and Mexico are clearly second: far better choices than Asia in terms of benefiting the U.S. economy."

Those interested in listening to this "reshoring" podcast in its entirety can do so by clicking on the link.

About The Reshoring Initiative

The Reshoring Initiative helps manufacturers and suppliers recognize the total cost of ownership, i.e. the profit/loss impact of both offshoring and domestic sourcing. Using the tools offered by the Reshoring Initiative at www.reshorenow.org instead of focusing solely on price or labor rates, manufacturers can make the right sourcing decisions to reduce their total cost of ownership of parts and tooling, improve their balance sheet and make product innovation more effective.

About The Offshore Group

The Offshore Group is the largest provider of outsourced business support, "shelter" services in Mexico. Currently 61 businesses operate at The Offshore Group's three Mexico manufacturing industrial parks in the State of Sonora, the city of Saltillo, Coahuila, and at the Group's Vangtel subsidiary in Hermosillo. Vangtel offers Mexico shelter services to companies that occupy the call center, IT development and BPO markets, while the International Logistic Solutions Company (ILS) is a leading provider of supply chain services. The Offshore Group has recently initiated operations in Mexico's second largest city, Guadalajara. Listen to more Offshore Group podcast by visiting its channel on iTunes.

Website: http://www.offshoregroup.com

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SOURCE The Offshore Group

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