Benefits of Reshoring and Bringing Manufacturing back to the USA

Many companies believe that offshore manufacturing is the best option because it is cheaper and the most common choice nowadays. As of 2004, manufacturing makes up only 9% of the American economy. However, in the past, American manufacturing was known as the gold standard around the world, as shown by the fact that manufacturing made up a whopping 53% of the American economy in 1965.

The good news is that in recent years the trend has been bringing manufacturing work back to the U.S. Rather than sending their business to China, Vietnam, or the Philippines. Even large companies are investing in reshoring manufacturing back to the U.S. Read about the beneficial effects of this trend and what it means for your manufacturing project.

COMMITMENT TO QUALITY

It’s no secret that American manufacturing is better quality. For over a hundred years, American manufacturing has lead the way in innovation and quality. American manufacturers are required to adhere to strict standards and regulations, and have a deep knowledge and understanding of their industry and culture. With higher training standards, American manufacturers have the skill to produce outstanding results with even the most difficult projects.

Offshore manufacturing inherently carries a greater risk with the potential for poorer materials, lower standards, less training, and lack of adherence to regulations and specifications. Complications can arise from lack of communication, language barriers, distance and the overall lack of control you have over the process.

industrial factory worker working in metal manufacturing industry

GREATER EFFICIENCY AND SAFETY

Because of the higher standards and quality, American manufacturing naturally creates fewer risks for your business, in financial, safety, regulatory and environmental terms. Foreign-made products can have an increased risk of malfunction, which can end up costing you more in the long run. Investing in American-made means greater cost-effectiveness, higher productivity, and safer results for your employees and your customers.

REINVESTING IN THE U.S.

When you choose U.S. based manufacturing, you are investing back in the U.S. economy – which ultimately benefits your business too. Domestic manufacturing creates jobs for Americans and gives American companies the opportunity to provide higher quality service and products, which increases their profits. Making the U.S. competitive on a local and global scale means more demand for your business too.

LOWER TRANSPORTATION COSTS

When products are manufactured locally, they don’t need to be shipped over such long distances, saving on shipping costs and protecting the environment. Offshore machining creates long lead times because products have to travel long distances, usually by sea. Choosing American manufacturing means faster results and better efficiency for your business.

THE MANUFACTURING GIANTS ARE DOING IT

Leading American companies like General Electric, Ford, Apple, Whirlpool, and Wal-Mart have already seen the practical and financial benefits in reshoring. These companies are investing in bringing manufacturing back to the U.S. Over half of executives in U.S.-based businesses making over $1 million in annual sales either plan on or are actively investing in U.S. manufacturing over offshore options, according to a 2013 study by the Boston Consulting Group. These manufacturing giants have already seen the enormous benefits of reshoring manufacturing work to the U.S., and the smaller companies are already following suit.

If you want to invest in U.S. manufacturing and see the results that could transform your business, talk to Inverse Solutions today. We produce high-quality machining projects of any size, right here on American soil.