Onshoring! Music to the ears of U.S. Manufacturers. Well, 2020 certainly created major supply chain disruptions. Businesses discovered the numerous challenges and threats that exist with outsourcing manufacturing operations. Especially when outsourcing critical products to foreign manufacturers overseas.
There are many factors that lead to challenges. Factors such as the heavy cost of monitoring operations and quality control. Also, the lack protecting intellectual property protection. In addition, an extended supply chain leads to hidden costs that hurt profits.
Consequently, these are all reasons a company would benefit by onshoring their products as opposed to offshoring products.
Excitedly, Falconer Electronics is seeing a strong upward trend with bringing custom manufacturing services back to the U.S.
Manufacturing Benefits of Onshoring
These positive trends with manufacturing operations returning to the U.S. holds great promise for U.S. custom manufacturers. Especially considering the negative results realized with outsourcing production to foreign countries.
Therefore, terms such as onshoring, reshoring, and redesign manufacturing are generating a new buzz. Onshoring drastically improves lead times. It also cuts inventory levels for your business. For example, at Falconer Electronics Inc. it is crucial to be located close to our vendors for fast lead times. This also improves inventory turnover.
Like Falconer Electronics, other companies in the U.S. are finally realizing the many benefits to manufacturing products stateside. However, this is after decades of losing U.S. manufacturing jobs. The majority of which went to lower cost countries such as China.
Well the tide is turning. Wage gaps are also shrinking between China and the United States. Additionally, the U.S. offers a superior infrastructure. Also, the U.S. still leads in terms of automation, education, information technology, and transportation.
Monitoring Operations and Intellectual Property
Another negative factor, relying on suppliers on the other side of the world causes a great deal of stress. Especially for critical products in your supply chain.
A domestic manufacturer plays the role of a valued partner at your business. The products and services a custom manufacturer offers impact every aspect of your company. Everything from their strategy, supply chain, staffing, and operations are affected. You still want to be sure that the work is getting done correctly and on time. Especially when you are not in the same area as your operations.
Also, you want to ensure your intellectual property is safe. How do you do this when offshoring? You will have to ensure you know what is being done at foreign suppliers.
Foreign knock-offs of U.S. goods is a plague that has gone on for years. As a result, many stories of devastation caused by foreign counterfeits exist.
This can mean hiring someone that you trust to run the offshore facility. Therefore, you would have to spend the extra amount to get a manager into that facility. Another extreme option and at even greater cost, moving your entire life to the new area. Whereas if you had your operations in the same place you are located you could save either of those costs. Better yet, a company enjoys more control to all of these aspects when they choose onshoring opposed to offshoring.
Onshoring Drives Quality Control
Quality control is another serious issue. Separating manufacturing and product development can be extremely detrimental. Managerial focus when operations are halfway around the world is a significant disadvantage.
We have had many clients experience unacceptable products from foreign suppliers. Therefore, failing to meet their customer’s standards. Furthermore, we have a history of repairing these products that have been imported.
By repairing these products, we are able to show our superior knowledge and skills. Even when working on pre-existing products. We have found that our customers greatly cherish the reliability and high quality work our team provides.
Reliability, flexibility, quality and trust play a vital role in your success. Onshoring your products to trusted U.S. manufacturers will deliver powerful results for your business.
Wrapping It Up
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