In this episode of Industry Ignited, host Dr. Leeanne Aguilar sits down with Harry Moser, the founder of the Reshoring Initiative, a driving force behind bringing manufacturing jobs back to the United States and restoring global competitiveness. Moser shares insights from his decades in manufacturing leadership, the hidden vulnerabilities of decades of offshoring, and what it truly takes to revitalize America’s industrial foundation.
Systemic Industry Challenge: The Hidden Costs and Vulnerabilities of Offshoring
For decades, many companies made sourcing decisions based purely on nominal wage rates and ex-works prices, overlooking major downstream risks:
- Erosion of Domestic Capabilities: Entire industrial ecosystems—from foundry work to precision machining—were wiped out, leaving local economies devastated and communities struggling for decades.
- Geopolitical Dependency: Heavy reliance on foreign manufacturing for critical components (such as pharmaceuticals, PPE, and rare earth materials) places nations in highly vulnerable positions if global tensions escalate.
- The Silo Effect in Procurement: Purchasing departments often operate under narrow budget metrics, rewarding buyers for lowering purchase prices while ignoring the compounding costs of inventory, quality issues, and supply chain disruptions.
Technical Breakdown: Total Cost of Ownership (TCO) vs. Price-Based Sourcing
Moser outlines how moving from simple price comparisons to a Total Cost of Ownership (TCO) model fundamentally shifts manufacturing economics.
| Decision Driver | Price-Based Sourcing (Traditional) | Total Cost of Ownership (TCO) Approach |
| Core Metric | Focuses solely on the unit purchase price and hourly wage differential ($2/hr vs. $20/hr). | Evaluates all relevant costs: duties, freight, inventory carrying costs, and quality risks. |
| Risk Management | Ignores geopolitical instability, supply chain bottlenecks, and the risk of stocking out. | Quantifies expected losses from stockouts, communication barriers, and long delivery windows. |
| Innovation & Agility | Separates engineering from manufacturing, making real-time collaborative problem-solving nearly impossible. | Keeps manufacturing close to engineering, enabling rapid design optimization and real-time collaboration. |
Strategic Leadership & Development Insights
Moser shared key philosophies for building a sustainable, long-term manufacturing strategy:
- Rethinking Lean Shoring: When bringing work back home, companies must not rely on outdated factory layouts, equipment, or motivational structures. True reshoring requires rethinking automation, lean flows, and employee training.
- Redefining Career Pathways in the Trades: Overcoming the cultural stigma that a traditional four-year university degree is the only path to success by promoting well-paying, debt-free technical apprenticeships.
- Public-Private Cooperation: Developing regional industrial hubs and fostering strong cooperation between private industry, community colleges, and basic education systems to support the skilled workforce.
Key Takeaways from the Interview
- The Power of TCO Data: Utilizing free tools like the TCO Estimator allows businesses to demonstrate to buyers that a higher initial purchase price can be offset by significantly lower total operational costs.
- The Importance of Policy Stability: While reshoring momentum is growing, long-term certainty around tariffs and government backing is essential for executives to commit to capital-intensive domestic projects.
- Creating a Virtuous Spiral: As local manufacturing returns and new factories are built, society’s perception changes, inspiring the next generation to pursue rewarding careers in the industrial sector.
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