Seven Advantages of Reshoring Manufacturing in 2022

“Reshoring” was the big manufacturing buzzword of 2021, and enthusiasm for the idea is likely to carry over into 2022. Lingering supply chain issues, materials scarcity, rising costs, and a shifting workforce are all contributing to reshoring buzz.

And as that buzz continues to reverberate around the industry, it’s good to understand the potential benefits of such a move. Consider these seven prospective advantages to reshoring in 2022 and beyond.

  1. Better quality control. It’s easier for a manufacturer to manage the quality of a supply chain in their own region. Proximity promotes better communication between all the links in the supply chain. Strong U.S. regulatory requirements also help ensure high quality solutions.
  2. Simpler supply chains. Working with an overseas supplier is much more logistically challenging than working with a local supplier. Shorter shipping times are just the beginning of a simplified, streamlined, local supply chain.
  3. Access to resources. The U.S. has a ready supply of dependable utilities and resources, including water and electricity. The manufacturing industry saw a reduction in transportation and logistics costs when the U.S. was recently named the world’s largest oil producer.
  4. Low tax and tariff costs. While tariff issues have calmed some since the beginning of the pandemic, they will likely persist for years to come. The U.S. may eventually sign fair trade deals with other countries, but there are no guarantees, and this uncertainty contributes to global business disruption.
  5. IP protections. The U.S. offers legal protections for intellectual property. IP theft can result in legal and/or financial consequences. Reshoring supply chains adds protection to business IP and gives companies the transparency they need to feel protected.
  6. Reinvestment in the U.S. Reshoring supply chains could promote domestic innovation and job growth. More jobs and lower production costs equate to more earning power and lower prices.
  7. Healthy job creation. The U.S. workforce took a major hit during the COVID-19 pandemic as millions lost their jobs while others chose retirement or quit for pandemic-related reasons. Reshoring supply chains could create a multitude of new job opportunities.

Reshoring won’t happen overnight. But for manufacturers looking to capitalize on these potential benefits, the shift to North American shores can start today. It’s important to lay the groundwork for future reshoring, including prospecting new talent, establishing new supply chains, and setting up domestic production in a sustainable way. With effort, reshoring can go from buzzword to reality.

Ease the burden of reestablishing domestic supply chains by partnering with service providers who can keep your factory running smoothly. You can always count on the professionals at Global Electronic Services. Contact us for all your industrial electronic, servo motor, AC and DC motor, hydraulic, and pneumatic needs — and don’t forget to like and follow us on Facebook!
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