In the last three years, the reasons to re-shore production to the US have become clear by many US Manufacturers. This was recently validated by Walmart’s decision to put $50 billion more worth of American-made goods on its shelves over the next 10 years. Walmart knows that products made in the US now have an advantage over similar product versions made oversees.
Another trend is new-shoring. Unlike re-shoring, which implies bringing jobs back to the U.S. that had previously left, many small businesses are new-shoring their products. New-shoring means starting from scratch right here in the US. The advantage? It may cost a little more, but by locally prototyping and building the first few batches of your product close to you, you’ll be able to see and fix potential issues and confidently get your item to mass market instead of taking risks with oversees production.
Overseas production can increase product costs by more than 20% and it has been suggested that over 50% of the off-shored production now needs to be reviewed for the following reasons:
- Reduced Total Cost of Ownership (TCO)
- Improved quality and consistency of products
- Reduces pipeline and surge inventory impact on just-in-time operations
- Clusters manufacturing near R&D facilities thus enhancing innovation
- Reduces intellectual property and regulatory compliance risk
- Eliminates the waste and instability
- Strengthens companies’ ability to respond quickly to customers’ demands
- The price of failure is too high
But it is not as easy as just deciding to move production back to the US or even deciding to start production in the US in the first place. Companies that are serious about re-shoring or new-shoring manufacturing and production will have to review their supply chains, inventory controls, secondary services, and be open to new ways of doing business in order to realize the true benefits of re-shoring and new-shoring production.
Choosing the right Plastic Injection Molder can help companies realize those benefits. Companies need to look for a Plastic Injection Molder that can be a partner and not just a vendor. Companies need to find a Plastic injection Molder that is willing to:
- Promote efficiency within the supply chain to pass on value to the customers
- Strive to be leaders in providing competitive solutions in cost, quality, and delivery
- Deliver consistent on time quality and have up to date certifications and inspections
- Manage Total Cost of Ownership (TCO) by providing inventory controls, secondary services, and single source solutions
- Provide an honest appraisal of your project and provide feedback for cost and manufacturability.
If you are a US Manufacturer that is considering re-shoring production or an innovative US Manufacturer that is looking to new-shore your next idea, we would enjoy the opportunity to be a resource for you. You can contact us through this link or through our website.
Sources: “As Overseas Costs Rise, More U.S. Companies Are ‘Reshoring “ on “All Things Considered” on npr.org by Jackie Northam
“Why New-Shoring Is the New School Of Manufacturing Trends” by Rich Thomas on manufacturing.net
“Reshoring, TCO & DFMA” by Harry Moser on designnews.com