The United States is facing a crucial workforce skills gap. For more rapid reshoring to take place, we need a more highly skilled and larger workforce.

For the past several years, the Reshoring Initiative has been helping manufacturers reshore production or keep existing work here through total cost of ownership (TCO) analysis. However, calculating TCO is only part of the overall competitiveness equation.

In his August 2017 editorial, “Tariff Debate Pits Producers Against Consumers,” chief editor John Sprovieri clearly posed the dilemma of low-priced Chinese steel imports, which have severely impacted the U.S. steel industry.

For the first time in decades, more manufacturing jobs are returning to the United States than are going offshore. The reshoring trend is at record levels, and I need your help to drive more growth!

Use the Total Cost of Ownership Estimator (TCO) to make a strong case when selling against offshore competitors! Sixty percent of companies make sourcing decisions based on rudimentary metrics, such as wage rate, ex-works price or landed cost, often resulting in a 15 to 30 percent understatement of actual offshoring costs.

In my December column, I discussed how total cost of ownership (TCO) can reveal the hidden costs of offshoring and determine the real profit and loss impact of reshoring and offshoring.

In our last column, we discussed how “total cost of ownership” (TCO) could reveal the hidden costs of offshoring and quantify the real profit and loss impact of reshoring or offshoring.

In our last column, we identified national policies that will help bring manufacturing back from offshore, thereby improving the country’s economy, employment and budget deficit.

Our government could do a lot more to level the playing field for manufacturing. While the Reshoring Initiative does not support individual candidates, we do recommend policies that will bring manufacturing back from offshore, and we try to document candidate positions on these issues.

My first column talked about why manufacturing matters most for our country. This month, I want to discuss how chasing cheap prices is not only hollowing out domestic manufacturing but, in many cases, it’s making the companies that offshore less profitable. For decades, consultants and MBAs have told companies to focus on their core competencies—mostly R&D, finance and marketing—and outsource manufacturing offshore. Now, companies are discovering that strategy was often wrong.