The Future of Manufacturing:

Reshoring and the Global Supply Chain

COVID-19 has prompted companies to rethink their global supply chains, including the reshoring of manufacturing back from China.

The U.S. manufacturing industry is at a unique and unprecedented crossroads to reevaluate operations due to COVID-19, including costs, supply chain reliability and risk of significant near-term business interruption. Historically, manufacturing footprint decisions were driven by cost, including labor and logistics, which have continued to rise in developing countries in recent years. Footprint location decision criteria need to be expanded beyond the historic focus on production costs to include broader supply chain factors and post-COVID-19 risk mitigation considerations. Today, additional strategic criteria are being weighed as heavily as cost, such as critical manufacturing designation, product quality, intellectual property protection and environmental impact.

Duff & Phelps Reshoring Index

Duff & Phelps has developed an index with six cost, risk and strategic criteria to evaluate 28 U.S. manufacturing industry sectors, identified by North American Industry Classification (NAICS) codes, to score and rank the sectors most likely to reshore.

Our analysis suggests many products historically made in China and destined for U.S. consumers or other markets worldwide show high potential for being reshored. Additionally, navigational and control instruments, transportation equipment, medical equipment and communications systems have emerged as the most likely to lead reshoring to the U.S.

Hover over each industry sector to learn more.

How We Can Help

Duff & Phelps can assist companies with reviewing their supply chain strategy, identifying and mitigating risks, selecting new sites and implementing their new strategies. 

We advise clients pursuing reshoring, realignment and transformation of their supply chain operations globally. We bring to bear the capabilities outlined below to help executives evaluate their business performance, baseline the cost structure, assess end-to-end supply chain risk and develop the supply chain network solution to support their manufacturing and business strategies. 

The Future of Manufacturing: Reshoring and the Global Supply Chain

  • Operational Strategy Development: Network and process design for manufacturing, procurement, distribution and logistics to support business strategy.
  • Network Analysis: Footprint and capacity assessment to optimize product flows from supply base to end customer, based on cost and strategic inputs.
  • Site Selection: Site selection based on latest trends, cost comparative analysis, labor availability and other critical location factors.
  • Supply Chain Risk Management: Identification, assessment, and mitigation and monitoring of financial, geopolitical, hazard, legal/regulatory, operational and reputational risks to ensure the flow of products, information and cash across the supply chain.
  • Incentive Negotiation and Tax Analysis: Optimization of  supply chain economics with discretionary incentives, national and international transfer pricing, cost segregation studies, state and local tax minimization strategies, and pollution control exemptions.
  • Total Cost Analysis: Business case analysis to evaluate end-to-end supply chain costs, benefits and sensitivities to ensure business health.

Contact Us

Contact Us

This field is required
This field is required
This field is required
This field is required
This field is required A valid email address is required
Please select an Option
This field is required
This field is required
We will use this information to respond to your inquiry and process your data in accordance with our privacy policy.

Other Areas We Can Help

Transaction Advisory Services

Transaction Advisory Services

Seamless analytical advisory through the deal continuum, from transaction origination to closing.

Transaction Advisory Services
Alternative Asset Advisory

Transfer Pricing

Comprehensive transfer pricing advisory covering compliance, planning, controversy and implementation.

Transfer Pricing
Jurisdictional Risk of COVID-19

Supply Chain Due Diligence

Offering overt and discreet investigations to uncover hidden compliance and reputational issues.

Supply Chain Due Diligence
Compliance, Risk and Diligence

Compliance Risk and Diligence

Helping firms comply with anti-money laundering and anti-bribery and corruption regulations.

Compliance Risk and Diligence
Security Risk Management

Security Risk Management

Helping clients anticipate/respond to a myriad of facility, operational, and employee safety challenges.

Security Risk Management
Cyber Risk

Cyber Risk

Kroll's award-winning cyber experts can help clients in every step of the way toward cyber resilience.

Cyber Risk

Insights

Webcast Replay

Reshoring Developments and Supply Chain Challenges

Webcast Replay
Risk Management

COVID 19 Immediate to Long Term Business Continuity Planning

Risk Management
Risk Management

Crisis Management and Business Continuity

Risk Management
Due Diligence

The Role of Due Diligence in Mitigating the Impact of Coronavirus on Your Global Supply Chain

Due Diligence
Business Intelligence and Investigations

How Are Governments, Non-profits and NGOs Dealing With the Heightened Risk of Financial Crime in the Current Climate?

Business Intelligence and Investigations
M&A Advisory

Healthcare Services Sector Update – Autumn 2021

M&A Advisory

News