Lenovo's North Carolina Onshoring Effort: One Year Later

edited December 2013 in CRN Community

imageLenovo's North Carolina Onshoring Effort: One Year Later

Lenovo's President of North America gives an update on the company's bold reshoring efforts, returning U.S. high-tech manufacturing jobs to North Carolina plant.

Read the full story here


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  • Reshoring manufacturing is becoming more attractive and a good strategic move for many companies due to rising wages in Asian countries, sourcing risks due to long supply chains, flexibility to respond to customers changing needs, intellectual property risks and the benefits to innovation.

    If companies consistently evaluate all of the costs and risks, about 500,000 more manufacturing jobs would come back and the trade deficit fall by about 25%.

    U.S.’ biggest advantage is being the world’s largest market. Our goal is to make 90% of what we consume instead of 75%. If we do that, we will stay the largest market for many years and thus offer companies an intrinsic advantage to manufacture here.

    The Reshoring Initiative www.ReshoreNow.org tracks all reported and some private cases of reshoring and we conclude that since the beginning of 2010, companies have created more than 80,000 manufacturing jobs by moving production to the U.S. from foreign countries.

    Current research shows many companies can reshore about 25% of what they have offshored and improve their profitability if they used TCO (total cost) instead of price to make their decision.

    The not-for-profit Reshoring Initiative’s free Total Cost of Ownership software helps corporations calculate the real P&L impact of reshoring or offshoring. In many cases companies will find that, although the production cost is lower offshore, the total cost is higher. TCO Estimator http://www.reshorenow.org/TCO_Estimator.cfm
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