The Advantages of Reshoring

Greater Control Over Production and Higher Quality Products

Offshore facilities are operating under the rules and regulations present in that country—which may not be as strict as the regulations in the United States. That could (and often does) mean lower production quality, poorer working conditions, and less environmental responsibility.

By reshoring manufacturing, you bring your production process closer to home—and closer to your consumers. You can keep an eye on production, rather than trusting another team in another facility half a world away, to uphold your standards. If you have a problem with a product manufactured in an offshore facility, you may not realize it for months. By that time, you probably have another shipment on the way and another order nearing completion in the factory. That’s wasted time, wasted materials, and wasted money. With a local supplier, issues can be addressed more effectively due to proximity.

Decrease Unemployment

Unemployment skyrocketed during the COVID-19 pandemic. Businesses shut down and many former employees had no other options. Reshoring manufacturing opens up a variety of skilled jobs right here at home, creating a positive butterfly effect that enhances the economy by strengthening households and entire communities. Supply chains are continuing to face disruptions, which is encouraging more companies to shorten their supply chains and keep their operations close to home—opening up more jobs for U.S. workers.

Shorter Lead Times

Products created overseas have to be transported from the facility, over the ocean, through a U.S. port for inspection and approval, and to the customer via trucks and planes. It’s a process that takes time even when it all goes smoothly: with even one disruption or mistake, the entire chain is slowed.

If you manufacture that same product in the United States, you’ve eliminated an enormous part of the process. There’s no coordinating the transport of the products from the factory to the boat, no overseas shipping, no U.S. customs. You simply transport your finished product from your facility to the retail store or directly to the customer. You save time and money while reducing your carbon footprint and enabling yourself to fulfill orders more quickly.

Reshoring has been trending for years, but the pandemic highlighted the need to bring manufacturing back to the United States. While offshoring can sometimes be a way for companies to save money on labor and materials costs, those savings, in general, no longer make up for the inconvenience and expense of the communications challenges, shipping, and the risk of delay and disruption.

Furthermore, consumers are becoming more aware of the environmental costs of overseas shipping, the poor working conditions in many overseas factories and the opportunities companies have to provide jobs within their communities. Demand for American-made products will continue to grow.