Reshoring is a major buzzword in American manufacturing these days, and for good reason. We’re seeing steady and significant numbers of companies of all sizes returning their business to American soil, realizing the multi-faceted value in doing so.
The fact is, many businesses learned the hard way that outsourcing simply doesn’t work—certainly not the way they’d hoped. Before looking at the many advantages of domestic manufacturing and reshoring, it helps to look at the problems of outsourcing.
Disadvantages of Overseas Manufacturing
When you’re making products of any kind, quality and service are your top priorities. So it stands to reason that when your supply chain is long, complex, and geographically far from you, the challenges grow exponentially, and the quality and service will therefore suffer.
After all, if a problem occurs, it’s a lot easier to address it when you’re in the same city, state, or country, rather than across an ocean. Furthermore, it’s easier to train and oversee your employees when they’re nearby. How can you possibly maintain constant control and communication when your workforce is thousands of miles away, and doesn’t speak the same language as you?
Finally, overseas labor costs, particularly in Asian countries where outsourcing was common, are rising dramatically. The U.S. is now competing with these countries, economically, while offering higher quality and productivity AND lower energy costs.
Why Reshoring Works
When you bring your production back to the U.S., you eliminate the aforementioned problems, while supporting the domestic economy and delivering goods and services that consumers will be satisfied with. It’s a win/win.
Additionally, reshoring or new-shoring (starting a new business here in America) creates jobs, thereby reducing unemployment. According to the Bureau of Labor Statistics’ August 2014 report, “nonfarm payroll employment increased in 35 states,” while 27 states had “statistically significant unemployment rate changes over the year, all of which were decreases.”*We—and many others—believe it’s safe to assume there’s a connection between the increase in employment and domestic manufacturing.
At Dart Controls, we are proud to manufacture in Indiana, a state which, far from many people’s perception, is huge in the manufacturing sector and is attracting a lot of industry attention. We have never gone offshore, and never will. We recognize the myriad advantages of domestic manufacturing, and encourage businesses of all sizes to consider the way doing business at home benefits the country and the individual companies.