After decades of moving manufacturing overseas, it appears the trend toward on-shoring that began in the early 2000s is not just a blip on the radar. In fact, for all intents and purposes, “Made in the USA” appears to be here to stay. Companies such as General Electric (who took quite a bit of abuse for being one of the first companies to move a lot of their manufacturing to China) have been “reshoring” a large number of jobs back to the United States. Other large companies such as Whirlpool, DuPont and Caterpillar have been at the front of the trend as well over the last few years.
American Manufacturing and Fabrication: Easier & Better
Why the change? While it varies by company, it turns out that many manufacturers learned a hard lesson regarding the negative side of offshoring labor over the last 30 years. From issues with quality control (difficult when attempted from 7000+ miles away, to say the least) and frustrations around production turnaround times to a lack of protections regarding intellectual property there are more than a few problems encountered when offshoring that generally are not a concern when manufacturing is kept in the U.S. Depending on just how complex the supply chain is, even more complications can arise that are utterly uncontrollable, including geopolitical issues such as wars and natural disasters, like tsunamis.
Raw Cost of American Manufacturing Has Decreased, Quality Has Increased
When companies keep their manufacturing supply chain on American soil, U.S. fabricators like EVS Metal are able to help them meet the needs of customers by quickly reacting to market trends at home, including a desire for new items, which often means producing additional quantities of products as well as parts for high-demand items, especially when that demand is unexpected.
Besides the day-to-day complexities of offshoring, there has been another important element that has impacted companies’ decision to bring back “Made in America” as a priority, and that is rapidly-changing economics. In what was likely a total shock to many, the Manufacturing Institute’s 2011 study reported that the “raw cost” of manufacturing in the United States had not just decreased, but had dropped below that of America’s largest trading partners. This meant that there was a stunning 29% total decrease in raw manufacturing costs since the same study was completed just eight years before. In other words, U.S. manufacturers are not simply a competitive option now — that are often the most competitive one, not just in terms of convenience, but when considering the pure economics of the matter.
Ready to speak with an American metal fabricator that has been delivering high-quality, end-to-end supply chain solutions to its U.S. customers for more than 20 years? Contact the specialists at EVS Metal today by requesting a personalized quote online, or by calling (973) 839-4432.