Guest blog post by Mark Doms, Under Secretary for Economic Affairs
Where to locate your business or a new facility for your business is a complicated decision. Many variables are involved, and if you are considering a location outside of the U.S., there are many factors that may not be obvious. At Commerce, we have been focused on making this decision and all of its moving parts easier to digest, and a major part of that is Commerceâ€™s ACE Tool.
First released in April 2013, the Assess Costs Everywhere (ACE) tool outlines the wide range of costs and risks associated with offshore production, and provides links to important public and private resources, so that firms can more accurately assess the total cost of operating overseas.
Today we have updated the data and deepened the analysis, but the original conclusions remain as fresh as ever. Multiple costs and risks--some visible and some hidden--accompany firms' decisions about where to set up a factory and the supply chain.
I have had the pleasure of meeting frequently with business owners from across the country. They talk about where their challenges are in growing and sustaining their businesses, and they also talk about how locating production abroad hasnâ€™t always turned out as well as they had hoped. Not surprisingly, during our current economic recovery and expansion, news reports and private consultants have repeatedly echoed that thinking. Increasingly we hear that U.S. companies that previously took their operations or supply chains overseas are now reshoring, or insourcing, bringing operations and supply chains back home to America.
The ACE Tool is intended to help businesses think through this complicated decision, and provide easy access to innovative research and thinking on issues related to site selection and supply chains. The ACE Tool is grounded in the forward-thinking work of Harry Moser of ReshoreNow.org and Rep. Frank Wolf, who called on Commerce to bring this effort to fruition. The Department of Commerce developed ACE in response to Rep. Wolf's call to help achieve our shared goals of boosting U.S. economic growth and ensuring that America remains competitive in manufacturing.
ACE explores 10 costs and risks: