How do you calculate nearshore capacity gap?

Multiply output per cycle by available cycles to get gross capacity, then multiply by expected uptime and first-pass yield. With 4 units/cycle, 480 cycles, 90% uptime, and 97% yield, gross is 1,920 units and good capacity is 1,676 units.

What is a good nearshore first-pass yield to assume?

For a maturing nearshore line, 95-98% first-pass yield is realistic; the default 97% costs you about 52 units off the 1,728 units that survive downtime. Established lines push past 99%, but assuming that on a new site is optimistic.

Why is my good capacity lower than gross capacity?

Two derates stack on top of gross. In the worked example, 90% uptime removes 192 units (downtime loss) and 97% yield removes another 52 units (yield loss), dropping 1,920 gross to 1,676 good.

Gross capacity vs good capacity — what's the difference?

Gross capacity is the theoretical ceiling if the line never stopped and never scrapped a part. Good capacity is what you can actually ship and invoice after availability and quality losses, which is the number you should plan customer commitments against.

How do I close a nearshore capacity gap?

You can add cycles (more shifts or faster cycle time), lift uptime through better PM and spares, or raise first-pass yield with process control. Each lever moves a different term — uptime and yield are usually the cheapest early wins on a new line.

Does this account for ramp-up?

No. It uses steady-state uptime and yield. During the first quarters a nearshore line typically runs below both, so blend in lower assumptions for early periods or run the calculator separately per ramp stage.

Reshoring & Tariff Strategy calculator

Nearshore Capacity Gap Calculator

Nearshore Capacity Gap tells you how many sellable units a candidate Mexico, Central America, or Eastern Europe site can actually produce per cycle once you discount it for realistic uptime and first-pass yield — not the brochure number. Reshoring and sourcing teams use it to size the true throughput shortfall when they pull volume off an Asian supplier and stand up a closer line. It matters because nearshore lines are often newer, slower to mature, and run below their nameplate rate in the first quarters, so the gap between gross and good capacity is exactly where service-level risk lives. Get this wrong and you over-commit to customers on a line that yields 1,676 good units when the spec sheet promised 1,920.

What this calculator does

Estimate nearshore capacity gap for reshoring and tariff strategy using production-ready inputs so teams can confirm whether capacity can cover demand before committing the schedule.
Use it when nearshore capacity gap in reshoring and tariff strategy is being asked to take on more work and you need to know if there is room.
It computes net good-unit capacity from output per cycle and available cycles, then derates that gross figure by expected uptime and first-pass yield.

Formula used

Gross nearshore capacity gap capacity = nearshore capacity gap output per cycle × available nearshore capacity gap cycles
Good nearshore capacity gap capacity = gross capacity × expected nearshore capacity gap uptime × expected nearshore capacity gap first-pass yield

Inputs explained

Nearshore capacity gap output per cycle: Use the good units, parts, cavities, assemblies, tests, or batches completed each cycle.
Available nearshore capacity gap cycles: Enter the planned cycles from the shift schedule, takt plan, asset plan, or run calendar.
Expected nearshore capacity gap uptime: Use recent uptime or availability from production reports, maintenance logs, or OEE data.
Expected nearshore capacity gap first-pass yield: Use first-pass yield from inspection, test, quality, or production records for the same scope.

How to use the result

Use it when qualifying a nearshore or reshored site and you need to compare its realistic deliverable output against the volume you're moving off an existing supplier.
It treats uptime and first-pass yield as flat constants for the whole horizon, so it overstates output during ramp-up when a new line's yield and availability are still climbing.

Current U.S. benchmarks

Sourcing currencies as of 2026-07-02 (Federal Reserve H.10): 6.7886 CNY and 17.4524 MXN per USD. Landed-cost comparisons move with these daily rates.
U.S. iron and steel imports ran $2.1B in May 2026 (Census International Trade). The U.S. ran a trade deficit of $0.4B in the category that month. Import volumes are the pressure gauge behind tariff and reshoring decisions.

Common questions

How do you calculate nearshore capacity gap? Multiply output per cycle by available cycles to get gross capacity, then multiply by expected uptime and first-pass yield. With 4 units/cycle, 480 cycles, 90% uptime, and 97% yield, gross is 1,920 units and good capacity is 1,676 units.
What is a good nearshore first-pass yield to assume? For a maturing nearshore line, 95-98% first-pass yield is realistic; the default 97% costs you about 52 units off the 1,728 units that survive downtime. Established lines push past 99%, but assuming that on a new site is optimistic.
Why is my good capacity lower than gross capacity? Two derates stack on top of gross. In the worked example, 90% uptime removes 192 units (downtime loss) and 97% yield removes another 52 units (yield loss), dropping 1,920 gross to 1,676 good.
Gross capacity vs good capacity — what's the difference? Gross capacity is the theoretical ceiling if the line never stopped and never scrapped a part. Good capacity is what you can actually ship and invoice after availability and quality losses, which is the number you should plan customer commitments against.
How do I close a nearshore capacity gap? You can add cycles (more shifts or faster cycle time), lift uptime through better PM and spares, or raise first-pass yield with process control. Each lever moves a different term — uptime and yield are usually the cheapest early wins on a new line.

Last reviewed 2026-05-12.