ECONOMIC VIABILITY OF RESHORING CONSUMER ELECTRONICS: A DIGITAL TWIN OPTIMIZATION DEVELOPMENT

Abstract

The global consumer electronics industry faces unprecedented pressure to reconsider offshore manufacturing strategies due to supply chain disruptions, geopolitical tensions, and rising labor costs in traditional manufacturing hubs. This research examines the economic viability of reshoring consumer electronics production using digital twin optimization frameworks. The study develops a comprehensive digital twin model that simulates production costs, supply chain dynamics, and operational efficiencies across offshore and reshored scenarios. Through analysis of three major consumer electronics manufacturers and simulation of various reshoring configurations, the research demonstrates that selective reshoring combined with automation can achieve cost parity with offshore production while reducing supply chain risks by approximately 35-42%. The digital twin optimization reveals that transportation costs, tariff structures, and automation levels serve as critical determinants of reshoring viability. Findings indicate that high-value, low-volume products show strongest reshoring potential, while commodity electronics require substantial automation investment to justify relocation. This research contributes methodologically by developing an integrated digital twin framework for reshoring decisions and practically by providing manufacturers with quantitative tools for strategic production location planning.