Toolbox

Reshoring Resources

The Assess Costs Everywhere (ACE) tool builds upon the ongoing public- and private-sector efforts to guide businesses and communities in determining the total cost of manufacturing overseas versus in the United States and why investing in American pays off. Below are links resources to help you make the decision.

• SelectUSA

  SelectUSA is a U.S. government-wide initiative to facilitate job-creating business investment into the United States and raise awareness of the critical role that foreign direct investment (FDI) plays in the U.S. economy. They provide advice and services to foreign investors of all sizes, domestic companies considering reshoring, and U.S. state, regional and local economic development organizations (EDOs).

  SelectUSA offers information about investing in the United States and provides a number of services, including:

  • Business Solutions: SelectUSA works directly with firms to help identify useful federal programs and services, provide information, and establish connections with EDOs.
  • Ombudsman Assistance: SelectUSA works with firms on a case-by-case basis to address issues or questions involving federal regulations, programs, or activities related to existing, pending, and potential investments.
  • Economic Development Organization Counseling: As subject-matter experts, SelectUSA staff can help EDOs successfully recruit and retain investment.
  • Advocacy for U.S. Cities, States, and Regions: SelectUSA helps level the playing field for U.S. EDOs competing with foreign locations for new foreign direct investment.

• National Institute of Standards and Technology, Manufacturing Extension Partnership

  The Manufacturing Extension Partnership (MEP) supports job creation now and in the future by encouraging manufacturers to develop products in America. Through a nationwide network of 60 centers, MEP provides a valuable infrastructure that fosters resilient processes for manufacturers to "Make it in America." By providing technical assistance to ensure challenges are addressed, problems are solved, and opportunities are realized, MEP successfully synchronizes public-private partnerships that are creating products and jobs in America. To find your local MEP center, please visit www.nist.gov/mep/.

  Building upon the Assess Costs Everywhere framework, MEP has created a Total Cost of Ownership (TCO) tool that allows businesses to determine the total costs of one supplier relative to up to three others under multiple scenarios. TCO focuses on minimizing the total costs while maximizing value to the customer. It encourages a sharper focus on the big-picture concept of complete supply chain optimization.

• The Reshoring Initiative, Total Cost of Ownership Estimator™

  The Total Cost of Ownership Estimator™ (TCO), developed by the Reshoring Initiative, is a tool that is available for manufacturers to determine the total cost of producing or sourcing products overseas. This tool enables aggregation of all cost and risk factors into one cost for simpler, more objective decision making. TCO analysis often shows there can be a large difference between the price of something and its long-term cost. Users can account for all relevant factors when determining their total cost of ownership, including overhead, balance sheet, corporate strategy, and other internal and external business costs. The Reshoring Initiative is an industry-led effort to bring manufacturing jobs back to the U.S. The initiative works with U.S. manufacturers to help them recognize their profit potential as well as the critical role they play in strengthening the economy by utilizing local sourcing and production.

• University of Lausanne's Cost-Differential Frontier calculator

  The Cost-Differential Frontier calculator developed by Professors Suzanne de Treville and Norman Schürhoff of the University of Lausanne's Faculty of Business and Economics (HEC) takes a quantitative-finance approach to calculating the true cost of extending the supply chain. This tool calculates the cost savings that offshoring needs to offer to compensate for the increased risk of stockouts or oversupply based on a company’s expected demand volatility, lead time, and the residual value of the product when held in inventory over an extended period. This estimation of the required cost differential complements the TCO estimator results: the two tools together provide a full picture of the cost of extending the supply chain. ACE’s inventory page provides a more detailed description of the calculator, as does this video presentation created by the University of Lausanne.

Key Data for Calculating Total Costs

As highlighted in the discussions of costs and risk areas, many online data sources provide valuable data to help firms complete total cost assessments. ACE uses a wide variety of data to provide an overview of costs and risks that might affect businesses considering where to manufacture and source. Links to key data sources cited in ACE are provided below so that businesses can more extensively examine the data relevant to their activities in order to make the most well-informed location decisions.

Country Comparisons

• Bureau of Labor Statistics, International Labor Comparisons program

  The Bureau of Labor Statistics' (BLS) International Labor Comparisons (ILC) program regularly publishes a statistical series of data adjusted to common concepts to facilitate international comparisons. Comparative statistical analyses have been undertaken for two main purposes: (1) to assess U.S. economic and labor market performance relative to other economies, and (2) to evaluate the competitive position of the United States in increasingly global markets.

  ACE cites this source in its discussion of labor costs.

• Economist Intelligence Unit, Operational Risk Ratings

  The Economist Intelligence Unit (EIU) produces analysis and forecasts on more than 200 countries and six key industries, with some material available for free and most through subscription. EIU's Operational Risk service, Risk Briefing, looks at a broad range of threats facing business operations across 180 markets. The model-based assessments cover issues from politics and security to finance and infrastructure, with commentary that sets the scores in context. The service also includes key risk scenarios for each country and a set of tools to help benchmark risk across countries.

  ACE cites this source in its discussions of labor costs and political and security risks.

• Department of Commerce, Office of Travel and Tourism Industries, Profile of U.S. Resident Travelers Visiting Overseas Destinations

  The Office of Travel and Tourism Industries (OTTI) collects, analyzes, and disseminates international travel and tourism statistics from the U.S. Travel and Tourism Statistical System. OTTI produces visitation data tables, including a business and pleasure arrivals rate of change analysis and detailed region, country, and port analyses. The annual report on U.S. Resident Travelers Visiting Overseas Destinations provides a wealth of information on the 27 million U.S. residents that travel overseas each year, including the nearly 6 million business travelers.

  ACE cites this source in its discussion of travel costs.

• Department of State, Foreign Per Diem Rates

  The Department of State establishes per diem rates for reimbursement of U.S. federal government employees traveling to foreign areas on official government business. These rates are calculated monthly and reported separately for Lodging and for Meals & Incidental Expenses. While costs vary across businesses, the federal government's per diem rates may help establish a cost baseline for daily expenses associated with foreign travel.

  ACE cites this source in its discussion of travel costs.

• U.S. Department of Commerce, U.S. Commercial Service, Country Commercial Guides

  The Country Commercial Guides are the U.S. Commercial Service's annual flagship publications designed to help businesses make smart strategic market entry decisions. The guides contain information on market conditions, purchasing power, consumer trends, distribution channels, navigating entry constraints, best sectors, key contacts, and other topics. There are guides for more than 100 countries, prepared by market experts located at U.S. embassies worldwide.

  ACE cites this source in its discussion of travel costs.

• World Economic Forum, Global Competitiveness Report

  The Global Competitiveness Report 2012-2013 assesses the competitiveness landscape of 144 economies, providing insight into the drivers of their productivity and prosperity.

  ACE cites this source in its discussions of shipping costs.

• World Bank, Doing Business

  The Doing Business project provides objective measures of business regulations affecting small and medium-sized businesses across 183 economies at the subnational, regional or city level (for selected cities). It includes factors such as paying taxes, enforcing contracts, obtaining construction permits and electricity, registering property and importing and exporting.

  ACE cites this source in its discussions of shipping costs, regulatory compliance costs and product quality.

• U.S. International Trade Commission, Tariff Database of the United States

  This database contains U.S. tariff data by country and product for use in classification of imported merchandise for rate-of-duty and statistical purposes. This resource allows businesses to determine which products incur tariff charges when entering the United States, as well as the tariff rate.

  ACE cites this source in its discussions of shipping and trade financing costs.

• U.S. Department of Energy, Energy Information Administration, International Energy Statistics

  The Energy Information Administration (EIA) publishes data by country, region and commercial group (OECD, OPEC) for 217 countries, including crude oil production, oil consumption, natural gas production and consumption, coal production and consumption, electricity generation and consumption, primary energy, energy intensity, CO2 emissions, and imports and exports for all fuels. Data also include prices of natural gas and electricity, as well as fuel costs for electricity generation for selected countries.

  ACE cites this source in its discussion of energy and real estate.

• STOPfakes.gov

  The Department of Commerce, in conjunction with other Federal agencies, developed the website www.STOPfakes.gov to serve as a resource to aid U.S. intellectual property (IP) holders in their efforts to protect and enforce their IP rights, both at home and abroad. The website is a one-stop shop for resources to educate and assist businesses, particularly small and medium-sized enterprises (SMEs), as well as consumers, government officials and the general public.

  ACE cites this source in its discussion of intellectual property.

• U.S. Department of Commerce's, U.S. Patent and Trademark Office, Fee Schedule

  The current U.S. Patent and Trademark Office fee schedule, including reduced fees for small entities, is available online.

  ACE cites this source in its discussion of intellectual property.

• World Bank, Investing Across Borders

  Investing Across Borders is a World Bank Group initiative comparing the regulation of foreign direct investment around the world. It presents quantitative indicators on economies' laws, regulations, and practices affecting how foreign companies invest across sectors, start a foreign business, access industrial land, and arbitrate commercial disputes.

  ACE cites this source in its discussion of regulatory compliance costs.

• Consumer Product Safety Commission

  The Consumer Product Safety Commission (CPSC) maintains a searchable online database of more than 5,000 product recalls and recall alerts.

  ACE cites this source in its discussion of product quality.

• World Bank, Multilateral Investment Guarantee Agency

  The World Bank's Multilateral Investment Guarantee Agency (MIGA) has a mandate to promote foreign direct investment in developing countries to enhance growth and development. MIGA produces an annual report on World Investment and Political Risk, which examines general trends in the global economy and FDI, corporate perceptions of political risk, and risk-mitigation strategies, as well as the latest developments in the Political Risk Insurance industry.

  ACE cites this source in its discussion of political and security risks.

• U.S. Department of State, International Travel Information

  The Department of State's International Travel Information uses a three-tier system to help Americans make decisions about where, and sometimes if, to travel. The three tiers are country-specific information, travel alerts and travel warnings.

  ACE cites this source in its discussion of political and security risks.