Reshoring & Tariff Strategy worked example

Reshoring Cost Comparison at 81% share of volume reshored: a worked example

What does the result look like when share of volume reshored reaches 81%? The full calculation is worked below with real intermediate numbers. A sourcing team weighs whether pulling a high-runner part back onshore is justified once tooling transfer and the unit-cost premium are accounted for.

The inputs for this scenario

  • Annual units relocated: 50,000 units/yr (unchanged)
  • Domestic unit cost premium: 3.2 $/unit (unchanged)
  • Share of volume reshored: 81 % (raised for this scenario; the documented default is 70)
  • One-time relocation cost: 85,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Annual reshoring delta ($) = units relocated x domestic premium x reshored share% + one-time relocation cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 214,600 $ for total reshoring cost comparison cost, the number this scenario is built around.
  • At this operating point the engine returns 4.29 $ / piece for reshoring cost comparison cost per unit.
  • At this operating point the engine returns 129,600 $ for variable reshoring cost comparison cost.
  • At this operating point the engine returns 85,000 $ for fixed reshoring cost comparison adder.

How this compares with the baseline

  • Against the tool's baseline example, where share of volume reshored sits at 70% and the headline result is 197,000 $, this scenario comes in 8.93% above the baseline at 214,600 $.
  • A figure at this level is achievable when share of volume reshored is genuinely sustained, not just peaked for a shift. It captures only the direct cost premium and relocation outlay; it does not credit savings from lower freight, duties, inventory, or quality that often justify the move.

Results at a glance

  • Total reshoring cost comparison cost: 214,600 $ (headline result)
  • Reshoring cost comparison cost per unit: 4.29 $ / piece
  • Variable reshoring cost comparison cost: 129,600 $
  • Fixed reshoring cost comparison adder: 85,000 $

Run it with your numbers

  • Every input above is editable in the live Reshoring Cost Comparison calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.