October 2020 E-News: Commerce Department Requests More Reshoring from China, Reshoring Initiative Responds
Investment Advisory Council (IAC) of the U.S. Department of Commerce The IAC met on September 10, 2020, reporting on a year’s work to Commerce Secretary Wilbur Ross, Assistant Secretary for Global Markets Ian Steff and Deputy Under Secretary for Policy Greg Kalbaugh. Traditionally, the IAC has focused primarily on FDI (foreign direct investment), but at this meeting reshoring received at least equal billing. In fact, Secretary Ross called for accelerated reshoring from China. The Reshoring Initiative’s Harry Moser, a Council member, submitted a proposal to achieve Secretary Ross’ goal.
Not waiting for Washington, the Reshoring Initiative has launched the Import Substitution Program (ISP), helping companies reshore and increase orders. The ISP is a great way for companies to rebuild their order books and recover from the COVID-19 crisis while they help the country at the same time. Six MEPs (Manufacturing Extension Partnerships) and one state EDO (Economic Development Organization) offer ISP, which also is available directly to companies. The Reshoring Initiative soon will be working with 100 companies.
The ISP package includes the following:
Import Substitution Program (ISP): Identifies major importers of what a company produces.
TCO Estimator: An online application to help companies make better sourcing decisions about offshore vs. domestic sourcing and sell against imports. This tool already has helped one company win a $60 million order over a Chinese competitor. Use the TCO Estimator to convince the importers to reshore and source from you.
How to participate:
- Apply thru your local participating MEP: IMEC (IL), Polaris (RI), MAGNET and FASTLANE (OH), MDMEP (MD), NY MEP (NY)
- In other states, ask your MEP or EDO to contact the Reshoring Initiative.
- Contact the Reshoring Initiative to subscribe directly
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