Global Tax Insights
Reshoring vs. OffshoringFebruary 12, 2015
Bringing manufacturing operations home may be a beneficial option for some US companies, but has also proven to be a difficult, and sometimes daunting process.
Offshoring is seemingly not the most profitable option for companies as of late, but is reshoring the solution? It appears that reshoring has its share of difficulties as well, which could present companies with a difficult decision on the proper course of action.
- Wider range of suppliers in China than in the US
- Shortage of skilled labor and an overall inexperienced workforce in the US
- Outdated machinery in US factories
Businesses thinking about reshoring will have to be prepared to face costly adjustments in business practices, so many are questioning whether reshoring is worth the risk.
For more information on the benefits and drawbacks of the reshoring process, please read our whitepaper: “Restoring Business through Reshoring”.