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Contents of The Real Cost of Insourcing

The Real Cost of Insourcing

• Capital cost: $3k to $7k per station, plus annual maintenance of ~10%
• Training cost: estimate $1500 per trainee; assume 30 to 80% turnover
• Labor: hire students at $12/hr
• Supervisors: assume supervisors cost 1.5x ($18/hr)
• Support: a support staff for 8 months at $50k/yr
• Benefits: use a 36% overhead number
• Facilities: estimate 1000 sq ft office space; loaded rate of $21.96/sq ft/yr