Nearshoring, reshoring, and insourcing: Moving beyond the total cost of ownership conversation

Many firms are reconsidering outsourcing and offshoring strategies. There is therefore a potential for a domestic renaissance of manufacturing of United States. Based on the case study, the authors find that that current production relocation is not perceived as a long-term business strategy for many manufactures. They also find that the relocation decisions made based on the model of total cost of ownership (TCO) will not deliver apparent near-term cost savings. Firms should have access to information especially concerning the complexity of outsourced manufacturing activities and processes of supply chain to completely evaluate the outsourced performance and relocation decisions.