There is a strong upward trend in onshoring. Especially, Onshoring of custom manufacturing.
Why is this?
This is due to, numerous challenges.
As well as, threats to outsourcing.
Especially, outsourcing manufacturing operations.
Furthermore, these threats increase when outsourcing to foreign countries.
Benefits of Onshoring Custom Manufacturing
There are positive trends. Especially, with manufacturing operations.
These trends are based on manufacturing returning to the US.
This is a great thing. Especially, for US manufacturers.
Furthermore, the outsourcing of production abroad to foreign countries have negative trends. Therefore, terms such as “onshoring” are generating a new buzz. This is along with, “redesign manufacturing”. As well as, “reshoring”
Perks of Onshoring Custom Manufacturing
There are many perks to onshoring. Especially, the onshoring of custom manufacturing. Most of these perks are for the businesses.
However, onshoring is also very helpful for the customer.
Some of the customer perks:
- Less lead time for your products.
- American made products that will last.
- Knowing that you have the highest quality of workers for the job.
- As well as, the highest quality of product.
- Quicker customer response for any issues.
- Lower in country costs.
- Lower shipping costs. Due to, less travel for the product.
- Lower risks to your intellectual property.
- Tax breaks for localizing your business.
What is Onshoring?
Onshoring is when a custom manufacturer has its business in its original country.
Therefore, they are not offshoring to a foreign country.
What does onshoring do?
- Onshoring, drastically improves lead times.
- Also, it cuts inventory levels.
What is reshoring?
Reshoring is when a business brings its production back to its original home.
Especially, for manufacturers in the United States.
Why is reshoring a good thing?
- Reshoring, brings manufacturing jobs back to The United States.
- Meanwhile, it reduces business costs.
Redesign manufacturing is when a local custom manufacturer is commissioned to repair a product.
This is also true, for total redesigning of products.
Why is redesign manufacturing important?
- Redesign manufacturing, occurs when a product is received and is not up to the buyers standards.
- Therefore, redesigning product is becoming more necessary.
- This is due to, low quality products being imported.
The Importance of Location in Onshoring Custom Manufacturing
For many companies, it is crucial to be located close to their vendors.
Especially, as supply chains shrink.
Companies in the US are realizing the benefits to manufacturing their products stateside.
However, this is after decades of losing US manufacturing jobs.
Unfortunately, the majority of these jobs went to lower cost countries. Such as, China.
Wage gaps are also shrinking between China and the United States.
The US is superior to China in many ways:
- As well as, education.
- Also, in information technology.
- In addition to, transportation.
The Hidden Cost of Outsourcing
Outsourcing comes with many hidden costs.
These hidden costs include:
- The heavy cost of monitoring operations.
- As well as, quality control.
- Also, there is a lack of intellectual property protection.
- Furthermore, there is an extended supply chain.
Consequently, these are all reasons a company would be better off onshoring the manufacturing of their products.
A custom manufacturing business offers products.
Also, they offer services.
Therefore, they can affect every aspect of a company.
Aspects such as:
- A business’s strategy.
- As well as, the supply chain.
- This is in addition to, that business’s staffing and operations.
A Company Can be Devastated by Offshoring
There are many concerns when choosing offshoring.
These concerns include:
- The control over the protection of intellectual property.
- A huge vulnerability. Especially, when relying on foreign suppliers.
- Frighteningly enough, there is the threat of stolen proprietary information.
- As well as, the loss of the business’s process.
However, a company has more control of these aspects when they choose onshoring.
No Heavy Cost of Monitoring Operations and Intellectual Property
When you are not in the same area as your operations you want to be sure that the work is correct and on time. Also, you want to ensure the safety of your intellectual property.
How do You Protect Your Intellectual Property When Offshoring?
You will have to ensure you know what is being done there.
Often, this can mean hiring someone that you trust to run the off-shored facility.
However, it may mean you will have to run the facility yourself.
Either way, you would have to spend extra money.
Whether it be to move a manager into that facility.
Or moving yourself to the new area.
However, you could save on those costs. If your operations were in your location.
Quality Control in Onshoring Custom Manufacturing
Quality control is another serious issue when offshoring.
The separation of manufacturing and product development can be very harmful to any business.
Another disadvantage is, managerial focus. Managerial focus is difficult. Especially, when operations are halfway around the world. Also, communication can be difficult.
Communication issues can lead to confusion. It can also lead to unreliable products.
Wrapping It Up
Lastly, to learn more about Wire Harness Manufacturing, check out these helpful links:
In addition, check out these helpful links on Ground Straps: