Offshoring, Reshoring & Nearshoring Danika Amundson, Caitlin Berry, Tracy Weispfenning & Joshua Yungner

Agenda: Offshoring, Reshoring & Nearshoring Definitions & summary Advantages & disadvantages Guidelines for companies looking into these practices Companies that have done/not so well with these practices

Advantages & Disadvantages: Offshoring SWOT Analysis STRENGTHS   Swiftness Expertise Core Process Concentration More Timely Delivery WEAKNESSES Synchronization of Deliverables Lack of Customer Focus Lower Quality Decrease Delivery Time Frames OPPORTUNITIES Mitigation of Risk-Analysis Reduced Operational Costs Reduced Recruitment Costs THREATS Risk of Exposing Confidential Data Hidden Costs Political Issues Environmental Issues

Advantages & Disadvantages: Reshoring SWOT Analysis STRENGTHS   Improved Quality & Consistency of Inputs Enhanced Innovation Reduced Intellectual Property Reduced Compliance Risk Improved Sustainability Strong IP Protection WEAKNESSES Less Specific Manufacturing Skills Less Focus on Customer Incentives OPPORTUNITIES Lowered Transport, Energy and Inventory Carrying Costs Eliminates Waste and Instability Brings Jobs Back to U.S. Balance U.S., State & Local Budgets Motivation to Enter Skilled Manufacturing Workforce Lower Supply Chain Risk Favorable Exchange Rates Design for Automation Potential THREATS Challenges with Design for Automation US Tax and Regulatory Polices Limited Vertical Ecosystem

Advantages & Disadvantages: Nearshoring SWOT Analysis STRENGTHS   Similar Time Zones Cultural Affinity Geographical Proximities Reduced Legal Issues WEAKNESSES Cultural and Language Differences Poor Quality Same Disadvantages of Offshoring (Lesser Degree) OPPORTUNITIES Better Communication Reduced Travel Ease of Immigration THREATS Wage Inflation Loss of Employee Morale Too Large Team Sizes