Why Should You Consider a Reshoring Initiative?Leave a Comment
Over the years, many companies offshored their manufacturing operations to take advantage of lower materials and labor costs. That decision was never without risk, and those risks came to light during COVID-19.
One survey by Everstream (formerly Resilience360) found that 98 percent of global supply chains suffered during the pandemic. Consumers and essential workers faced shortages of everything from personal protective equipment to toilet paper, pharmaceuticals and semiconductors to bread and flour. Supply chain interruptions and delays led to long waits and higher costs, and it has made many companies rethink their offshoring practices.
Reshoring initiatives have been gaining steam over the last few years, but the pandemic accelerated them. Manufacturers are looking to onshore their operations to improve supply chain management and quality control, lower transportation costs, eliminate import tariffs, and reduce their carbon footprint.
What Are We Seeing in 2021 With Reshoring?
The 2020 Data Report by the Reshoring Initiative indicated a rise in reshoring, which is expected to continue well into this year and beyond. The benefits are enormous: with 83 percent of manufacturers in North America now “likely” or “extremely likely” to reshore, it could boost the economy by $443 billion if those manufacturers each add just one domestic supplier to their contracts.
The process could provide thousands or even millions of jobs for Americans—there are still about five million manufacturing jobs located offshore. Bringing some or all of them back to the United States could reduce the trade deficit, boost the economy, and support the local communities where these facilities will be located.
What Are the Key Benefits of Reshoring Your Supply Chain?
Bringing your manufacturing operations and supply chain closer to home offers a number of benefits for your company, your customers, your community, and the national economy:
It’s hard to oversee daily operations when they’re half a world away, and often operating under different restrictions and quality standards. This becomes especially important for critical industries like healthcare, automotive and aerospace, military, and technology, where lesser quality products can put people’s lives in danger. When your supply chain is in the same part of the world as you are, you can keep a better eye on what’s happening, and you can make changes more quickly if you notice an error.
Because offshore manufacturing requires finished products to spend a long time in transit, it’s hard to make revisions when you notice an error. By the time you see a mistake, you already have another shipment in route. Furthermore, long shipping routes feature more opportunities for delays and lost products.
Bringing more jobs back to the U.S. gives companies an opportunity to take advantage of a highly skilled and motivated workforce while further developing these workers and giving them the space to innovate. When a manufacturing company is the keystone of a community, it brings the entire community together and develops loyalty and commitment among the employees.
Avoiding Complicated Taxes and Tariffs
There’s a lot of uncertainty around current and future trade deals, and global relationships are rarely simple. High tariffs hurt your company and your customers, and they’re probably not going to disappear any time soon.
Why You Should Reshore With NADCO Solutions
For years, NADCO has specialized in custom adhesive solutions for clients in a wide range of industries. We’re committed to providing high-quality tapes and labels and supplementary services to meet all your adhesive needs.
With short lead times, consistent product quality, and around-the-clock customer support, our team is here to help you find the best solution—or to create a new one perfectly suited to you and your company. Our custom services are available for orders both large and small.
U.S. manufacturing is on the rise, and we’re proud to be a part of it. After starting our company in New Hampshire decades ago, we’ve been based in Sarasota, Florida since 2005 as a domestic partner for our long-time clients. We look forward to working with new clients who are ready to keep their supply chains closer to home for the benefit of your company and your customers. Contact us for more information about our custom tapes and labels or to place your order.