When manufacturing moves back: Concepts and questions

Drivers and barriers to reshoring: a literature review on offshoring in reverse

“…The problem of this model is that it appears to focus too much on the home country and opportunities to reshore (as the name 'home country opportunity matrix' already suggests) instead of also seeking out opportunities abroad. Fratocchi et al (2014) outlined the reshoring decision process as a part of the general strategic approach to the internationalization of production. They conceptualized the internationalization of manufacturing in a multi-step process.…”

“…In other words, costs increase as more companies compete for scarce resources including human labor and other factors which are usually not considered as strategic, such as transportation capacity . Fratocchi et al (2014) somewhat simplify the above by suggesting that there are two types of reshoring cases -those provoked by the global crisis and government incentives to increase jobs at home and those which occur in countries where no such incentives are given to companies. This leads them to conclude that "complex dynamics involving locational, industry, and firm-level factors are at issue and deserve closer attention" (p. 54).…”

“…He also takes a stance on ethical supply chain issues criticizing for instance the 'low-bid mentality' or abuse of cheap labor by firms in their sourcing and shoring agendas (Fine, 2013). Fratocchi et al (2014) discuss future research opportunities by dividing possible directions in four areas: motivation for (back-) reshoring, involved value chain activities, location specificities at home and abroad, and the modes of entry and exit to and from the offshoring destination. In addition to Fratocchi et al's call for more research, Arlbjørn and Mikkelsen (2014) propose three further areas to extend the knowledge on reshoring: research on practice of globalization strategies over time and differentiated by company size, the use of automation (how and to what extent can it keep manufacturing in the home country) and ambidexterity (the question of companies' allocation and use of resources in daily operations versus development and supply chain innovation in the organization).…”

“…London, UK, Sage Publications. Arik, 2013;Arlbjørn and Mikkelsen, 2014;Ellram et al, 2013;Fine, 2013;Fratocchi et al, 2014;Grappi et al, 2015;Gray et al, 2013;Gylling et al, 2015;Kazmer, 2014;Kinkel, 2012;Kinkel 2014;Moutray and Swift, 2013;Pearce, 2014;Tate et al, 2014;Verdu et al, 2012;Wu and Zhang, 2014 "However, in recent years offshoring has cooled and there have been some tentative signs of multi-national firms moving parts of their value chains back to their home economies." (p. 1) "Moving manufacturing back to the country of its parent company."…”

“…(p. 155) Onshoring Kazmer (2014) "Some manufacturers are returning part or all of their foreign production to domestic facilities, an action that has been termed onshoring." (p. 464) Back-reshoring Fratocchi et al (2014) "A voluntary corporate strategy regarding the homecountry's partial or total relocation of (in-sourced or out-sourced) production to serve the local, regional or global demands", making the phenomenon a strategic option for manufacturing firms in regards their international relocation activities." (p. 56) Ellram et al, 2013;Gray et al, 2013;Tate et al, 2014 Increased focus on sustainability Fine, 2013;Tate et al, 2014 Strengthen brand through made in "XX" Pearce, 2014 Barriers Stricter environmental legislation Ellram et al, 2013;Gray et al, 2013 Lack or shortage of raw-materials and components Lack or shortage of qualified staff Moutray & Swift, 2013 Lack of flexibility in the labor market Supply chain…”