Why American Manufacturers are Considering Reshoring
For years now we have heard about American manufacturers losing jobs to offshoring suppliers because production costs in the U.S. was simply too high. For the past few years experts have now been reporting that businesses who pursued the offshoring production are now planning to bring the work back home here in the U.S..
According to Boston Consulting Group’s August 2011 report Made in America Again: Why Manufacturing will Return to the US they suggest that “Around three-quarters of the manufacturing that is reshored from China will likely shift to the U.S. in the coming decade”. They also stated that “Conservatively, we expect that around half the appliance manufacturing returning to the U.S. will be done in the U.S..
Benefits of Manufacturing Reshoring
There are several economic reasons as to why reshoring is taking place. But other key reasons for the reshoring movement include:
- Reduces Total Cost of Ownership
- Improves quality and consistency of inputs
- Reduces pipeline and surge inventory impact on just-in-time operations
- Clusters manufacturing near R&D facilities, enhancing innovation
- Reduces intellectual property and regulatory compliance risk
- Eliminates the waste and instability caused by offshoring
- Strengthens companies’ ability to respond quickly to customers' demands
Top reasons for the nation to reshore:
- Brings jobs back to the U.S.
- Helps balance U.S., state and local budgets
- Motivates recruits to enter the skilled manufacturing workforce
- Strengthens the defense industrial base
On June 17, 2014 the US Office of Public Affairs published a press release urging all “U.S. manufacturers to evaluate the benefits of reshoring their operations back to the United States”. For a copy of the press release and to learn more about recent news regarding reshoring:
So what are you doing to position your company to take advantage of the opportunities? Acieta can help you prepare your business to be competitive by offering companies a low per part cost but also higher quality and responsiveness. To learn more how we can assist you in positioning your company to take advantage of these tremendous opportunities contact us at (844) – 4 – ACIETA or submit an online information request and one of our automation specialist will contact immediately.
To discuss known automation opportunities or discover new ones: