In January Spend Matters covered Walmart’s decision to drive $50 billion in spending to U.S. suppliers over the next decade…
If your product requires specialty materials, high skills and has high logistical costs then it may make sense to re-shore.
It’s evident that there’s strong political, social and economic reasons to consider re-shoring and again each individual company has to weigh in on the pros/cons.
Trends driving re-shoring include favorable energy costs, cost of real estate and the de-valuation of the dollar.
Regardless a company must consider their own true cost of ownership to compete and win in the marketplace.
Keeping things in perspective, Walmart’s revenue exceeds $450 billion annually and it’s decision to drive $50 billion to onshore suppliers over a ten year period roughly equates to slightly more than 1% of their revenue.