 As low-wage markets opened up in the late 70s, 80s, and more so in the 90s, offshoring became a very common practice of American firms, where they would take an activity that was performed in the United States and move the activity to say China or other low-wage locations. Reshoring is taking an activity that has been performed in those low-wage locations and returning it to the United States. Onshoring, another term commonly used, really refers to performing the activity in the United States, whether it was ever offshored or not. In the global economy a couple of a lot of things are happening. One big thing is costs in China and other emerging markets have been going up at a very high rate now from a very low baseline, but they've been going up at a high rate. In addition, the Chinese currency has been strengthening, which makes goods imported from China more expensive. So those are some couple of macroeconomic factors. Other things is companies that have made offshoring decisions in the past, maybe based primarily on price differentials, are realizing some of these hidden costs are real and they've experienced them. Things like the Thai flooding in the past year, which has led to some severe disruptions of long supply chains, issues with IP loss, some quality issues, and simply monitoring, contracting, renegotiating contracts. All of those things can be more expensive when you're doing them in an offshore location. And also there's been some, there might have been a herd mentality to offshore, maybe in the 90s. There might be an emerging kind of herd mentality to bring things back on. I don't think it's there yet, but with the Super Bowl ads by GE and Chrysler talking up Made in America, GE even showing plants, manufacturing products in the USA. There might be some increased kind of movement to make products in America. In addition, Apple's recent bad press for the issues with their supply chain or their supplier in China. Again, more and more, it seems like more and more press attention is being paid to issues with manufacturing offshore and benefits of manufacturing onshore. It's hard to say exactly which sectors. Let's talk about the characteristics of an activity that might make reshoring more attractive. Some common ones are relatively low labor contents, the labor costs being a relatively low percentage of the total cost of ownership, especially when again total costs have to consider several factors that we discussed earlier. High need for collaboration between personnel in the domestic market and personnel in the manufacturing operation, relatively high shipping costs, high risk of IP loss or high concern for IP loss. Those are some of the factors that might matter. So some of the sectors that we talk about being good candidates for reshoring, much of which the activity already is onshore, would be aerospace, medical devices, auto parts, chemicals, pharmaceuticals, those types of activities, although Frisbees have been brought back onshore in the last few years. So there's certainly a wide range of potential candidates. Managers making sourcing decisions should be considering the total costs of ownership of the activity. Total costs of performing the activity offshore versus the total costs of performing the activity onshore or domestically. And when considering total cost, if you fail to consider total costs, this is akin to buying a car with looking only at the sticker price, but not considering other factors such as mileage, reliability, whether the car will break down when you're on your way to an important meeting, impact on the environment, etc. So there's various ways to consider total costs. A simple tool created by Harry Moser of the Reshoring Initiative is called the Total Cost of Ownership Estimator, and that ensures you capture factors such as IP risk, quality risk, logistics costs, etc. And more advanced tools exist where you can compare the two choices in a net present value calculation, incorporating uncertainties with Monte Carlo simulation or other tools. But the main thing is factoring in total costs in the decision.