Reshoring in Action: An Electronics Enclosure Case Study
Faced with twelve‑week transit times and volatile tariffs, a consumer‑electronics OEM evaluated domestic CNC suppliers for its flagship router enclosure. Initial quotes appeared twenty‑percent higher, but a total‑landed‑cost analysis painted a different picture once freight, safety stock, and import duties were included.
The company dual‑sourced the first five thousand units to hedge risk, then invested in fixture‑ready blanks to reduce machining passes. Local anodizers implemented a just‑in‑time batch system, eliminating two weeks of queue time. Within nine months, working capital tied up in ocean freight dropped by 1.2 million dollars, offsetting higher unit cost and reducing stock‑outs during peak demand.
The enclosure program demonstrates that reshoring success hinges on holistic cost modeling and process re‑engineering rather than mere tariff avoidance. When upstream and downstream partners align, domestic production can outpace offshore alternatives without eroding margin.
References
Reshoring Initiative, “Casebook 2025,” 2025; Journal of Supply Chain Management, “Domestic Sourcing Metrics,” April 2025.
Target Keywords: reshoring case study, electronics enclosure, supply chain localization, cost analysis, domestic manufacturing
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