Remember Long Beach in 2021? I certainly do. 97 ships sitting idle in the harbor, creating zero movement. That image has stayed with me as a perfect illustration of why we need to rethink our approach to manufacturing and supply chains. Today, I want to settle the “reshoring vs. staying global” debate in building products once and for all.
Table of Contents
The Cost Reality
Let’s be crystal clear: reshoring isn’t cheaper.
In fact, it’s quite the opposite.
You’re not bringing manufacturing back to the U.S. to save on per-unit cost.
The Real Value
What you’re actually betting on is resilience, not efficiency.
The win comes when your competitor’s containers are stuck in Long Beach or Savannah for 90 days and yours aren’t.
The Critical Catch
Here’s what you need to know: Reshoring only works if you can handle 15-20% higher COGS (Cost of Goods Sold) and STILL compete on:
- Brand recognition
- Speed
- Quality
- Code compliance
Making The Choice
The decision comes down to your key differentiator:
- If your only differentiator is price, stay global
- If your differentiator is reliability, reshore
Conclusion
The reshoring debate isn’t about finding the cheapest solution but about building resilience into your supply chain. The question isn’t whether we can afford to reshore, but whether we can afford not to.
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