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Costs of Offshore Manufacturing


FANUC Robotics America, Inc., the largest industrial robotics supplier, has started a new initiative to keep North American manufacturers from moving offshore. Fifteen other companies have joined the Save Your Factory initiative, with the express aim to prevent offshoring by encouraging manufacturers to "fully and objectively analyze the advantages of technology, lean manufacturing and quality-enhancing techniques, process improvements, robotic automation, and the total costs of off-shore manufacturing before deciding whether to source overseas."

Global competition is driving North American manufacturers to increase efficiency, improve productivity and make their production more flexible. Save Your Factory urges North American manufacturing companies to recognize automation and robotics as a more cost effective and profitable alternative to moving manufacturing facilities offshore. The benefits of low cost labor are often outweighed by costs in shipping, importing raw materials, longer turnaround time, lower quality, and product counterfeiting.

"Innovation and automation that produces bottom-line results will mark the difference between life and death for manufacturers in the near future," says Rick Schneider, president and CEO of FANUC Robotics America, Inc. "Automation is absolutely critical now for North American manufacturers to be competitive in the world market because it helps companies reduce costs, increase quality and improve control of their manufacturing operations."

The Save Your Factory initiative is offering online resources to organizations who are interested in moving their manufacturing operations overseas. These white papers, articles, video testimonies, and case studies outline some of the additional costs and risks that may overshadow the benefits of low cost labor. Save Your Factory also promotes its message through speaking engagements and events.





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