Reshoring and the New Era of Manufacturing

At the beginning of 2021, 1,800 U.S. firms were planning to reshore their business or parts of their business, which projected to bring 220,000 new jobs back to the U.S. Why this sudden rush to reshore?

Companies Want a Shorter Supply Chain

Businesses are coming back to the United States and leaving China in hopes of less disruption within the supply chain. Disruption adds time and costs to production and assembly, leaving companies behind schedule and over budget. By bringing materials, assembly, and manufacturing back to the states, companies can have more control.

New Era of Manufacturing

Since the pandemic, companies have recognized that lower manufacturing costs in a foreign country do not always guarantee a higher return. Continuing to manufacture abroad can mean less profit in the long run. Reliability is becoming more important than price.

Reshoring also allows companies to respond quicker to customer demands and be more hands-on during production, which leads to tighter control of product quality and deliverables. Established timelines are easier to maintain when communication is more accessible.

Positive Effects of the Pandemic

Manufacturing has also begun to see a faster “bring to market” timeline. The pandemic accelerated many economic events, including reshoring, but also created new opportunities for faster production and new product approval. Decisions that usually take more than a year are happening within 6 months, creating a space for development and larger teams, which in return means more jobs.

 

As a recruiting firm specializing in manufacturing, MRT is dedicated to helping companies find the right fit for every job placement need. Please feel free to reach out to one of our executive recruiters here.  We welcome the opportunity to serve you.