When times are tough people move back home. This is true of college students and the mass reverse migrations occurring from diaspora workforces, but what about from companies?
As shipping and logistic cost increase and deflation rears its ugly head the beneficiary will be localized/American manufacturing. According to a survey by 2008 Archstone/SCMR Survey of Manufacturers the cost of offshoring have skyrocketed since its peak in 2005. Ocean freight have increased 135%, the Chinese Yuan has gained 18% against the dollar and Chinese wages have grown by 44%. The survey went on to find that 40% of manufacturing executives expect a 25% or more in “core” direct costs on off-shored supply. And these are just the costs.
What is not explored is the real total cost of ownership, or TCO in biz speak, that goes into offshoring. As companies explore the true cost of off-shoring, supplier price and terms, delivery costs, operations quality/cost and IP concerns I believe that more companies will insource.
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theffernan4
Tim Heffernan has experience leading and advising Fortune 500s through all phases of market development, business development, research, government relations, public relations, crisis, branding and internal communications. Tim has advised government, corporate affairs, marcoms and market development executives in the areas of healthcare, financial services, retail, entertainment, supply chain, consumer behavior, environment, technology, and enterprise policy.
Prior to Aperio Consulting, Tim was vice president of Government Relations and Emerging Business Opportunities for NCR Corporation. He was responsible for policy-driven growth initiatives that drove innovation, revenue and aided in reducing NCR's cost structure. He sat on NCR’s Innovation Council where his team incubated approved council ideas and holds two patent-pending technologies. In addition, Tim managed corporate and marketing communications for the company, including external media relations, executive communications, events, multimedia, graphics and digital services, community relations and thought leadership activities.
Prior to joining NCR, Tim headed Motorola’s Enterprise Mobility Division’s (formerly Symbol Technologies) Government Relations, Public Policy and Affairs. Prior to working at Motorola, Tim worked for communication firm KCSA, and began his career at Weber/Shandwick (formerly Shandwick.) He also held public relations/marketing research positions at Nexgenix and the NPD Group.
Heffernan holds a Bachelor of Arts degree in political science from the University of Rhode Island. He has been rewarded with both challenge coins from the Department of Defense and a token of appreciation from The White House. He lives in Brickell, FL.
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