| Made in America is back! The benefits of reshoring

Posted in Manufacturing at 9:00 AM by Loftis Consulting

Reshoring may seem like too big and logistically complicated a commitment for most business owners, but it just so happens to be one the strongest trends in manufacturing in recent years.

For those unfamiliar with the prospect, reshoring is the practice of returning manufacturing operations to the US that had previously been moved to another country (typically in Asia or Mexico).

Many cite logistical complications or cost as a deciding factor in businesses not reshoring their operations to their home turf but as this injection molding cost calculator illustrates, rising costs of overseas production are proving that overseas production can be an increasingly false economy.

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But it doesn’t stop at cost. Here are some unexpected benefits of reshoring manufacturing operations:

 

Quality

Overseas production may have seemed attractive due to its low cost. But low cost may mean low quality parts, low quality tools, low quality labor and low quality technology. The logistics of shipping can result in your business having an inventory full of cheaply made, low quality products and by the time you find out about it, it’s already too late.

Today’s consumers value quality that you just won’t get from countries with lax manufacturing laws.

 

Control

Overseas production relies on you placing a great deal of trust in manufacturers’ production processes. Ensuring that products meet your exacting standards can be logistically complicated or even impossible. Many foreign countries are less stringent in their worker conditions, product standardization and quality control. Relocating manufacturing to US soil allows for greater control of product quality and greater assurances that manufacturing staff are working in fair and safe conditions.

 

Feeds Competition and Innovation At Home

As industry, jobs and infrastructure return to US soil you will be uniquely positioned to help feed the country’s industrial recovery and lead innovation.

Over the past 30-40 years as manufacturing has drifted towards Asian territories, Singapore, China, Korea and Japan have achieved great innovation through manufacturing.

Streamlining

Goods produced overseas come with inherent complications and overheads. Goods are shipped from overseas to warehouses at home where they must be stored and transported to stores, businesses and individuals. These processes can be time consuming, risky and expensive.

Goods made on US soil usually have much simpler distribution processes that represent a reduction in risk, time delays and costs.

It also makes sense to bring your products closer to their intended American consumers. Reshoring production back onto American soil puts production capacity closer to the home market and presents a huge reduction in time-to-market for completed products.

 

Creating Jobs At Home

Unemployment levels are on the up but America still has millions of unemployed men and women struggling to find gainful employment. Reshoring is a great way to ensure that American workers have skilled jobs to help grow our economy and status as a global manufacturing hub.

Every business is different and the scope of your operation and the extent of your existing commitments will determine how readily you can reshore manufacturing back home, but these are some important reasons why you should at least consider it.

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