Are You on the Manufacturing Reshoring Bandwagon?
June 3, 2021 | Manufacturing
According to a recent Thomas Insights Report, 83% of US manufacturers are bringing production back home from abroad. Issues with availability of components, parts and products have stifled growth as the US economy is poised for a surge in production.
Lower cost production and just-in-time inventory methods have their place. The attraction of low price fades quickly when needed parts and products are not available at all.
Placing all of one's proverbial eggs in one basket has proven to yield less than ideal outcomes, leaving manufacturers and their customers out of stock, without a clear idea of when the stock will be replenished. These unreliable conditions have led to manufacturing lay-offs and production slowdowns that are counter-productive considering the increased manufacturing demand in a post-Covid environment.
MSI is having discussions with forward thinking manufacturers who rather than sit back watching and waiting, are seeking multiple and diverse options when it comes to where their production occurs. Both domestic and foreign companies are seeing the benefits of keeping production, assembly and fulfillment geographically closer to their end user or consumer. It makes sense that this approach would resonate with those who prefer to maintain a steady supply chain, a steady workforce and a more consistent revenue flow.
Of course, this trend has the potential to be viewed as good news for manufacturers and contract manufacturers in the US. It has been said that necessity is the mother of invention. When necessary parts and products aren't available, it becomes necessary to make changes to what are sometimes longstanding practices.
Is the US expected to see a manufacturing boom? Let's hope so!