What Is Manufacturing Reshoring?
The quick answer to this question is that manufacturing reshoring is the practice of bringing manufacturing back to the United States. You see, manufacturing processes have long been offshored to other countries, most notably China. Now, law- and policymakers are making an effort to bring these processes and jobs back to our shores. Here are some other questions you might have.
How did this happen?
When global trade first opened up, it didn’t take long for corporations to learn that they could save money by offshoring manufacturing and other services to China. They were able to save on:
- Payroll with significantly cheaper labor in China
- Payroll taxes
- Parts and equipment, which are also manufactured in China
As usual, whenever most corporations can save money, they do.
Why is manufacturing reshoring happening now?
You might think the pandemic started reshoring; but in truth, it started much earlier. By 2014, thirty metal fabrication companies had already restored 1,721 jobs to the United States. Our industry is the most likely to benefit from reshoring.
There are a lot of different incentives for companies to bring their manufacturing back to our country. Domestic fabrication is good for everyone because:
- It provides jobs to the local area.
- Local jobs stimulate the local, state, and national economies.
- Companies now save money by using domestic fabrication services.
There are several driving factors that are really pushing the change, beyond the obvious of the pandemic. These include:
- Wages in Asia have increased dramatically in the last decade, and it really isn’t cheaper labor by going overseas anymore.
- Shipping and supply chains are very lengthy causing delays in other industries.
- Anyone who has ordered from Wish knows how difficult it is to get something from China. Translate that into parts for your necessary equipment, and you can easily see the issue this presents.
- Americans have higher quality standards today than three decades ago; and as such, the cheap materials making manufacturing cost lower are no longer acceptable.
Anyone can easily see how much this would impact our business and our industry.
But we have weathered the storm. Our clients know that they can expect the highest quality stainless steel fabrication services possible. Now, as companies are bringing projects back to the U.S., we are prepared to help them establish a collaborative relationship with our expert designers and fabricators.
Ready to learn more information? Contact us today.