This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Manufacturing: Reshoring) is a 21-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
Offshoring from the US and other high cost economies to low cost emerging market countries was a dominant theme of manufacturing in the late 1990s and 2000s.
Now, Reshoring offers the promise of re-establishing the link between product design and manufacturing, between original equipment manufacturers and strategic supplier ecosystem. Reshoring is also a political topic, as it presents the prospect of bringing overseas manufacturing jobs back to the company’s own country. Reshoring also allows for risk mitigation in the case where there is a disruption to the global Supply Chain, as experienced by most companies with Offshore Manufacturing during the COVID-19 crisis.
The big picture is drifting away from the centrality of labor-cost-arbitrage as a driver of location decisions. Instead, it is moving towards proximity models driven by a supplier ecosystem, with additional focus on people, skills and organizational capabilities.
While macroeconomic data on comparative labor and factor costs may be compelling, the actual process of Reshoring is a daunting task. The process of bringing assembly work back to domestic factories from abroad is substantially more challenging than the economics alone would predict.
In this presentation, we examine 6 key considerations to make the Reshoring effort well directed and manageable:
1. Work Force Stabilization
2. Gaps in Skills
3. Capital-Labor Ratio
4. Supply Base Localization
5. Customer Partnerships
6. Manufacturing Proximity
This deck also includes slide templates for you to use in your own business presentations.
This presentation provides a comprehensive analysis of the strategic and operational factors critical to successful reshoring. It delves into workforce stabilization, addressing skills gaps, and optimizing the capital-labor ratio. The PPT also emphasizes the importance of localizing the supply base and fostering customer partnerships to enhance manufacturing proximity. The insights and templates included are designed to equip executives with actionable strategies and practical tools for navigating the complexities of reshoring. This resource is essential for leaders aiming to make informed decisions and achieve sustainable competitive advantages through reshoring initiatives.
This PPT slide outlines 6 critical considerations for effectively planning and executing manufacturing reshoring. Each point is presented in a clear, structured manner, facilitating quick comprehension for decision-makers.
The first consideration, "Work Force Stabilization," emphasizes the importance of ensuring a reliable and skilled workforce. This aspect is crucial as it directly impacts productivity and operational efficiency. The second point, "Gaps in Skills," highlights the need to identify and address skill deficiencies within the existing workforce. This is vital for maintaining competitive manufacturing capabilities.
Next, the "Capital-Labor Ratio" is mentioned, which suggests a careful evaluation of the balance between capital investment and labor costs. This consideration is essential for optimizing resource allocation and ensuring sustainable operations. The fourth point, "Supply Base Localization," stresses the significance of sourcing materials and components closer to manufacturing sites. This can enhance supply chain resilience and reduce lead times.
The fifth consideration, "Customer Partnerships," points to the necessity of collaborating with customers to understand their needs better and align production strategies accordingly. Strong partnerships can lead to improved customer satisfaction and loyalty. Lastly, "Manufacturing Proximity" underscores the benefits of situating manufacturing facilities near key markets or resources, which can reduce transportation costs and improve responsiveness.
Together, these 6 considerations form a comprehensive framework for leaders looking to navigate the complexities of reshoring. They provide a structured approach to assess the feasibility and implications of bringing manufacturing operations back to domestic locations. This slide serves as a valuable tool for executives contemplating a reshoring strategy, offering insights that can guide informed decision-making.
This PPT slide presents a critical examination of supply base localization as a key operational factor in the reshoring process. It highlights the challenges faced by managers in industries where production is relocated to countries like the US, particularly when existing supply chains are underdeveloped. The example given illustrates that many domestic suppliers for essential components, such as screen displays and batteries, are lacking, leading to increased logistics costs when materials must be imported.
The slide emphasizes that for reshoring efforts to be economically viable, the benefits gained from customization and proximity to market must outweigh the additional costs associated with transportation and supply chain logistics. This sets a clear expectation that localized supply chains require careful planning and execution.
Two primary considerations for effective supply base localization are outlined. First, organizations must identify core competencies that need to be developed internally. This involves assessing which capabilities can be built in-house to enhance operational efficiency. Second, there is a need to recognize areas where strategic partnerships with suppliers can yield greater benefits. This dual approach encourages a balance between internal capability development and external collaboration.
The case example from Appliance Park reinforces these points, illustrating the necessity for managers to adopt a strategic perspective on supplier relationships. It stresses the importance of long-term investments in supplier ecosystems over short-term cost negotiations. This insight is crucial for executives considering reshoring strategies, as it underscores the need for a comprehensive approach that integrates both economic and strategic factors in supply base localization.
This PPT slide focuses on the critical importance of workforce stability in manufacturing operations. It opens with an overview that highlights the challenges posed by high employee turnover, which disrupts production schedules and affects output consistency. The text emphasizes that without a stable workforce, a factory cannot maintain the quality and reliability necessary for effective manufacturing.
Two primary components of the workforce issue are outlined: the "Expectations Gap" and "Job Abandonment." The Expectations Gap refers to the disconnect between workers' perceptions of manufacturing roles and the actual demands of these jobs, which have evolved due to advancements in technology and processes. This gap can lead to increased attrition and instability within the workforce.
Job Abandonment is identified as another significant factor contributing to workforce instability. It suggests that while extrinsic motivators like wages are important, they are not the sole drivers of employee retention. Instead, intrinsic factors such as personal growth and development opportunities play a crucial role in fostering loyalty and tenure among employees.
A case example from Appliance Park illustrates the practical implications of these concepts. The facility aimed to hire 2,500 workers, but faced a high turnover rate of 23% within the first year. To address this, they revised their selection process to prioritize candidates with relevant training and certifications. They also established a certification path for employees, allowing them to advance within the organization. This approach not only aligned with manufacturing needs, but also encouraged personal development, thereby enhancing workforce stability.
The insights presented in this slide underscore the necessity for manufacturing firms to invest in workforce stabilization strategies to ensure operational success.
This PPT slide addresses the critical issue of skill gaps in heavily offshored countries, which poses a significant barrier to successful reshoring initiatives. It highlights a generational deficiency in technical skills, particularly in the U.S., where extensive offshoring has led to a shortage of qualified professionals in key areas such as automation engineering and assembly operations. The lack of investment in technical skill development has exacerbated this issue, creating a pressing need for specialized talent in fields like Metalworking and Metallurgy.
The slide outlines a two-pronged strategy to tackle these skill shortages. First, it emphasizes the importance of mobilizing a Global Resource Pool to attract capable individuals from various regions. Second, it suggests identifying local resources from adjacent industries, which can provide experienced personnel familiar with the necessary processes. This dual approach aims to quickly establish effective leadership and enhance process improvements, ultimately driving quality and production yield.
A case example from Fort Worth illustrates the practical application of these strategies. Flextronics management engaged 150 manufacturing leaders globally, including a skilled manager from Hong Kong, to set up essential manufacturing processes. Over a 10-week period, they established critical assembly and logistics functions while training the workforce. Another example from Appliance Park demonstrates the necessity of an intensive recruitment campaign to find experienced engineers, as relying solely on existing resources proved insufficient.
The slide concludes with a reminder that addressing these capability gaps is a long-term endeavor that cannot be resolved overnight. This insight is vital for organizations considering reshoring, as it underscores the need for a strategic approach to workforce development.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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