The topic of reshoring is hot on the minds of many U.S. manufacturers. ReshoreNow.org has reported that the tide is now turning. In their latest report, this organization, which helps companies assess their total cost of offshoring, estimates that reshoring exceeds offshoring by 27,000 jobs. This is good news for American manufacturing.
Manufacturers might consider reshoring for various reasons, as reported by ReshoreNow.org:
- Shorter lead time
- Higher product quality and consistency
- Rising offshore wages
- Skilled workforce
- Freight costs
- Image of being Made in USA
- Lower inventory levels, better turns
- Better responsiveness to changing customer demands
- Minimal intellectual property and regulatory compliance risks
- Improved innovation and product differentiation
- Local tax incentives
We've seen a lot of new business from companies looking to reduce the total cost (and the headache) of using offshore suppliers. In one case a commodity buyer worked with PFI Precision Machining to develop a solution that resulted in significantly lower total procurement cost and improved assembly cell uptime.
