By Rafael Gonzalez
The unknowns and variables of today’s market complicate decisions concerning in-shoring or changing the current supply chain for products being built in low-cost regions. There may be much contemplation and angst when making this decision, therefore it is prudent to remember that numerous manufacturers have already successfully moved back to the U.S. Even more are now seriously considering it.
It is also true that every scenario is different and that without sufficient data to support the decision, it still might be risky to move manufacturing back to America. To mitigate these risks, high quality and reliable domestic suppliers must become part of your team.
To facilitate the goal of accelerating ROI, each manufacturer must have a firm grasp of the facts and an efficient process to maximize the benefits of such a move. The bottom-line numbers must be realistic and support the benefits of the production transfer. If they do not, a thorough analysis will determine the deficiencies and pathway forward to amend the errors, obstacles, and/or misconceptions.
Since there is a temporary product demand reduction in offshore production, this is an opportunistic time to move manufacturing to a domestic supplier. When production volumes resume their high levels, it will be more difficult to implement an in-shore manufacturing plan.
As more U.S. companies in-shore their production, available capacity will eventually be consumed by those who are the first to recognize and react to the opportunity.
Manufacturing in the U.S. has many advantages, not the least of which is the rapidly disappearing delta in offshore labor costs. In addition, there is the declining quality of products made overseas, tariffs, and even more relevant today, the importance of the restoration of a strong and healthy U.S. economy.
In-shoring is not simple; but it is a lot more doable than it may look and there is real gratification from doing so. It is wise to re-evaluate and consider by the numbers that while off shoring seemed a good idea a few decades ago, it is not true today.
In-shoring is an excellent option! In addition, more than ever, our country needs to stand together for the survival of our communities, our people, and the American way of life.
For more information, please contact Rafael Gonzalez at: : (360) 608-4227 or firstname.lastname@example.org