In-Country Outsourcing

Art Whelan is a senior vice president with Logistics Plus of Erie, Pennsylvania. His firm helps companies outsource production around both the United States and the globe—and he says the former choice is frequently more cost-effective. 

Rather than looking at the differences in production cost between different countries, he says companies should examine the differences between different regions of the United States. For example, his own region is less expensive than Chicago or Detroit—but near enough to these cities that customers there do not have to carry extra inventory to deal with shipping delays. For this reason and others, the logic of “offshoring” might make more sense when there is no shore involved. Read more here.