If you're evaluating whether to move aluminum fabrication from an offshore supplier back to the United States, the per-unit manufacturing cost is probably the first number you'll compare. And on that single metric, offshore suppliers often win, sometimes by 15-25%.
But per-unit cost is a misleading comparison. It ignores the full constellation of costs that procurement professionals increasingly recognize as the real drivers of total program cost. The Reshoring Initiative's 2025 survey found that only 26% of OEM customers are still comparing suppliers on plant-level manufacturing cost alone. The majority, 57% combined, are evaluating suppliers on either landed cost or total cost of ownership.
Here's what a comprehensive total cost comparison includes, and why the math often favors domestic production.
The Hidden Costs of Offshore Fabrication
Lead time cost:A 12-week ocean freight cycle means you're carrying 3 months of inventory that a domestic supplier with a 3-4 week lead time eliminates. That's working capital sitting in a warehouse instead of earning returns. For a $50,000 monthly spend, that's $150,000 in additional inventory carrying cost, plus the warehouse space to store it.
Quality cost: Defects discovered after a 12-week supply chain delay are exponentially more expensive to resolve than defects caught during a domestic production run where your engineering team can visit the shop floor in a few hours. A single quality escape on an offshore shipment can cost more than the annual savings you projected from the lower per-unit price.
Communication cost: Engineering change orders that take 48 hours domestically can take 2-3 weeks through an offshore partner dealing with time zones, language barriers, and document translation. Those delays translate directly to extended development cycles and missed market windows.
Logistics cost: Ocean freight rates have been volatile since 2020. Tariffs on Chinese imports currently sit at 25% and show no signs of decreasing. Container delays, port congestion, and customs clearance add unpredictability to every shipment. What looked like a 20% savings can evaporate when you factor in a $4,000 container surcharge and a 3-week port delay.
IP risk: Sharing detailed engineering drawings with overseas manufacturers introduces intellectual property exposure that domestic production eliminates entirely. For proprietary designs or competitive innovations, this risk is often unquantifiable, but very real.
What a Total Cost Comparison Actually Looks Like
When we help customers evaluate reshoring decisions, we build a comprehensive cost model that includes every factor affecting program economics:
| Cost Factor | Offshore | Domestic (FWM) |
|---|---|---|
| Per-unit manufacturing cost | Lower (typically 15-25%) | Higher |
| Ocean freight & logistics | $2,000-8,000 per container | $0 (truck delivery) |
| Tariffs (China) | 25% on many aluminum products | $0 |
| Lead time | 10-14 weeks | 3-5 weeks |
| Inventory carrying cost | High (3+ months buffer) | Low (2-4 weeks buffer) |
| Engineering change turnaround | 2-3 weeks | 24 to 48 hours |
| Defect resolution time | Weeks to months | Hours to days |
| IP risk | Moderate to high | Protected |
| Site visit cost | $5,000+ (international travel) | $200-500 (regional drive) |
| Communication | Async, translated | Direct, same timezone |
When all of these factors are included, domestic fabrication frequently matches or beats offshore pricing on a total-cost basis, while delivering shorter lead times, higher quality, and dramatically lower risk.
Is Reshoring Right for Your Program?
Reshoring isn't the right answer for every product. High-volume, low-complexity commodity parts may still make sense offshore. But for complex aluminum assemblies, weldments requiring certified welding processes, pressure-containing equipment, or programs where quality and delivery reliability are critical, domestic manufacturing increasingly wins on total cost of ownership.
FWM works with OEM teams evaluating domestic aluminum fabrication. A review can compare drawings, process steps, supplier handoffs, documentation needs, volume, and target timing before either side commits to a production path.
If you're evaluating whether to reshore a fabrication program, we're happy to walk through a total cost analysis with you, no commitment required. Contact our engineering team to discuss your specific situation.