The benefits of re-shoring!
For manufacturers focused on the U.S. market, cutting out overseas shipping saves both time and money. For instance, market research firm IHS found it costs Google slightly less to manufacture the Moto X smartphone in Texas than it does for Samsung to make its popular Galaxy S4 smartphone in Korea. By using standardized parts and manufacturing at home, IHS found Google was able to get its phones into customers’ hands in as little as four days, compared to weeks for overseas manufacturers. Meanwhile, with assembly wages at the Texas plant starting at just $9 an hour, labour accounts for a mere five per cent of the total cost of making the Moto X.